Chapter 5 Question 2

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Ehrling Brothers Company makes jobs to customer order. During the month of July, the following occurred: a. Materials were purchased on account for $45,620. b. Materials totaling $40,980 were requisitioned for use in producing various. c. Direct labor payroll for the month was $19,200 with an average wage of $12 per hour. d. Actual overhead of $8,850 was incurred and paid in cash. e. Manufacturing overhead is charged to production at the rate of $5.40 per direct labor hour. f. Completed jobs costing $60,000 were transferred to Finished Goods. Beginning balances as of July 1 were: Required: 1. Prepare the journal entries for the preceding events