Question 1

Kitty Cat Cafe uses a job costing system. Record journal entries for the following transactions:

Purchased raw materials on account, $75,000.

Requisitioned $44,500 of direct materials and $7,000 of indirect materials for use in production.

Factory payroll incurred, $90,000; 80% direct labour, 20% indirect labour.

Recorded depreciation expense factory equipment of $12,000, and other manufacturing overhead of $42,100 (credit accounts payable).

Allocated manufacturing overhead costs based on 120% of direct labour cost.

Cost of completed production for the current month, $142,000.

Cost of finished goods sold, $115,000; selling price, $175,000 (all sales on account).