Selected transactions regarding Peyvandi Corp.’s manufacturing process are listed.
(a) Purchased raw material on account, $84,000
(b) Used direct material in production, $44,000
(c) Incurred labor costs: 3,400 direct labor hours at $40,000, and 800 indirect labor hours at $12,000
(d) Recorded depreciation on factory equipment, $4,400
(e) Recorded the expiration of one month of prepaid insurance, $2,000
(f) Received but did not pay an electricity bill, $1,700
(g) Pay an external company to repair factory equipment, $500
(h) Applied overhead to goods in process at a rate of $5 per direct labor hour
(i) Transferred completed goods to finished goods, $107,200
(j) Sold goods costing $100,000 to credit customers for $178,000
Required:
Prepare journal entries to record the Peyvandi’s transactions. Use a single account for both variable and fixed overhead (Overhead Control).