Following are transaction for Montego Manufacturing Company. Assume that the company has beginning work-in-process inventory. Use journal entries to record these transactions.

a. Montego purchased $600,000 of raw materials with cash.

b. The production manager requisitioned $260,000 of materials (90% for direct use and the remainder for indirect purposes).

c. 24,000 hours of direct labor and 2,000 hours of indirect labor incurred. Assume an average hourly wage rate of $9 for both)

d. The following salaries were paid:

Factory supervisor                 $80,000

Administrative personnel        90,000

e. Manufacturing overhead is applied at a rate of $6.90 per direct labor hour.

f. All but $35,000 of the Work-in-Process Inventory was completed.

g. The sales price of finished goods that were sold was 130% of manufacturing costs. Assume that all finished goods were sold.