Finn Manufacturing Company uses a job order cost accounting system and keeps perpetual inventory records. Prepare journal entries to record the following transactions during the month of June.
June 1. Purchased raw materials for $20,000 on account.
June 8 Raw materials requisitioned by peoduction:
Direct materials $8,000
Indirect materials $1,000
June 15 Paid factory utilities, $2,100 and repairs for factory equipment, $8,000.
June 25 Incurred $108,000 of factory labor.
June 25 Time tickets indicated the following:
Direct labor (7,000 hrs x $12 per hour) = $84,000
Indirect Labor (3,000 hrs x $8 per hour) = 24,000
June 25 Applied manufacturing overhead to production based on a predetermined overhead rate of $7 per direct labor hour worked.
June 28 Goods costing $18,000 were completed in the factory and were transferred to finished goods.
June 30 Goods costing $15,000 were sold for $20,000 on account.