JOB ORDER COSTING TRANSACTIONS D & K Enterprises makes wicker baskets.

During the month of August, the company had four job orders: 501, 502, 503, and 504. Overhead was applied at predetermined rates, while actual factory overhead was recorded as incurred. All four jobs were completed.

(a) Purchased raw materials on account, $44,000.

(b) Issued direct materials to production:

Job No. 501: $8,200

Job No. 502: 9,100

Job No. 503: 7,300

Job No. 504: 8,500

(c) Issued indirect materials to production, $5,000.

(d) Incurred direct labor costs:

Job No. 501: $4,800

Job No. 502: 4,100

Job No. 503: 4,800

Job No. 504: 5,000

(e) Charged indirect labor to production, $3,300.

(f) Paid electricity, heating oil, and repair bills for the factory and charged to production, $5,200.

(g) Applied factory overhead to each of the jobs using a predetermined factory overhead rate as follows:

Job No. 501: $3,100

Job No. 502: 3,300

Job No. 503: 3,300

Job No. 504: 3,800

(h) Finished Job Nos. 501–504 and transferred to the finished goods inventory account as products W, X, Y, and Z.

(i) Sold products W, X, Y, and Z for $17,500, $18,000, $16,900, and $19,000, respectively.

REQUIRED

1. Prepare general journal entries to record transactions (a) through (i).

2. Post the entries to the work in process and finished goods T accounts only.