Chapter 17-Process Costing- Sample Problem 1. Journalize the following transactions: 1. Keaubie Co. purchased $70,000 of raw materials on account. 2. Actual manufacturing overhead costs include: a. Factory Rent (paid): $2,000 b. Factory Insurance: $2,100 c. Utilities on account: $1,950 d. Depreciation on equipment: $2,500 e. Repairs on account: $1,375 I 3. Keaubie Co. issued $15,000 of material to Process A. 4. Assigned $20,000 of factory labor, of which $9,000 was indirect labor. 5. Manufacturing overhead costs are applied at 60% of material issued 6. Balance in WIP-A is transferred to Process-B 7. $22,000 of material is issued to Process-B 8. Assigned factory labor costs totaling $15,000, of which $8,000 was indirect labor. 9. Manufacturing overhead costs are applied to Process B at a rate of 79% of material issued (to process B) 10.Balance of Process B is transferred to Finished Goods