Chico Company makes pinatas for children’s birthday parties. Information for Chico s last six months of operation follows:

Required:

Prepare the journal entries to record each of the following transactions.

(a) Purchased \($7,800\) of raw materials on credit.

(b) Issued \($4,600\) of direct materials into production.

(c) Applied \($16,500\) of conversion cost.

(d) Paid in full for the raw materials purchased on credit.

(e) Completed costing \($19,750\) pinatas.

(f) Recorded actual conversion costs of $ 18,000.

(g) Sold pinatas for \($33,000\) that cost \($22,000\) to produce.

(h) Disposed of any over- or underapplied conversion cost.