Exercise 3-25 Recording cost flows in a process cost system LO P1, P2, P3, P4 Laffer Lumber produces bagged bark for use in landscaping. Production involves packaging bark chips in plastic bags in a bagging department. The following information describes production operations for October Bagging Department $234,000 $ Direct materials used Direct labor used 38,000 Predetermined overhead rate (based on direct labor) Goods transferred from bagging to finished goods 1108 $(201,500) The company's revenue for the month totaled $440,000 from credit sales, and its cost of goods sold for the month is $242,000. Prepare summary journal entries dated October 31 to record its October production activities for (1) direct materials usage, (2) direct labor incurred (3) overhead allocation, (4) goods transfer from production to finished goods, and (5) credit sales. View transaction list Journal entry worksheet 1 2 3 4 5 Record direct materials used in production Note: Enter debits before credits. Date General Journal Debit Credit Oct 31 Record entry Clear entry View general journal