Prepare journal entries to record transactions a through h.

1. Raw materials purchased on credit, $94,000.
2. Direct materials used, $40,500. Indirect materials used, $25,000.
3. Direct labor used, $50,000. Indirect labor used, $20,000. (Record using Factory Wages Payable.)
4. Paid cash for other actual overhead costs, $7,875.
5. Applied overhead at the rate of 125% of direct labor cost.
6. Transferred cost of jobs completed to finished goods, $74,000.
7. Sales of jobs on credit was $105,000.
8. Cost of jobs sold was $74,000.

Record raw materials purchased on account .

Transaction	General Journal	Debit	Credit
a.

Record the entry to assign costs of direct materials used.

Transaction	General Journal	Debit	Credit
b(1).

Record the entry for indirect materials.

Transaction	General Journal	Debit	Credit
b(2).

Record the entry for direct labor used.

Transaction	General Journal	Debit	Credit
c(1).

Record the entry for indirect labor used.

Note: Enter debits before credits.

Transaction	General Journal	Debit	Credit
c(2)

Record other actual factory overhead costs.

Transaction	General Journal	Debit	Credit
d.

Record the entry to apply overhead at a rate of 125% of direct labor cost.

Transaction	General Journal	Debit	Credit
e.

Record costs of jobs completed.

Transaction	General Journal	Debit	Credit
f.

Record the sale of jobs on account.

Transaction	General Journal	Debit	Credit
g.

Record the cost of goods sold for job.

Transaction	General Journal	Debit	Credit
h.