Malone, Inc. uses a job order cost accounting system and keeps perpetual inventory records. Prepare journal entries to record the following transactions during the month of July.

July2Purchased raw materials for $18,000 on account

9Raw materials requisitioned by production:

Direct materials$14,000

Indirect materials2,000

14 Paid factory utilities, $2,300 and repairs for factory equipment, $4,000

21Incurred $45,000 of factory labor

26Time tickets indicated the following:

Direct Labor(3,000 hrs × $12 per hr)=$36,000

Indirect Labor(1,000 hrs × $9 per hr)= 9,000

$45,000

28Applied manufacturing overhead to production based on a predetermined overhead rate of $6 per direct labor hour worked

28Goods costing $56,000 were completed and transferred to finished goods

30Goods costing $50,000 were sold for $80,000 on account