Chapter $17$ Job Order Cost Systems and Overhead Allocations

Zelda Manufacturing organized in June and recorded the following transactions during its firt month of operations.

Purchased materials costing $$800,000.$

Used direct materials in production costing $$485,000.$

Applied direct labor costs of $$500,000$ to various jobs.

Applied manufacturing overhead at a rate of $$10$ per direct labor hour. $($Direct labor morfers earn $$20$ per hour.$)$

Incurred actual manufacturing overhead costs of $$245,000($credit "Various Accounts"$).$

Transferred completed jobs costing $$745,000$ to finished goods.

Sold completed jobs for $$1,000,000$ on account. The cost applied to the jobs sold totald $$615,000.$

Closed the Manufacturing Overhead account directly to Cost of Goods Sold on June $30.$

a$.$ Prepare a journal entry for each of the eight transactions listed.

b$.$ Compute the balance of the Cost of Goods Sold account at June $30.$

c$.$ Determine the company's inventory balances at the end of June.