June

1

Purchased raw materials for $22,000 on account.

8

Raw materials requisitioned by production:

Direct materials

$8,500

Indirect materials

1,500

15

Paid factory utilities, $2,400 and repairs for factory equipment, $7,500.

25

Incurred $98,000 of factory labor.

25

Time tickets indicated the following:

Direct Labor

(6,000 hrs. @ $13 per hr.)

=

$78,000

Indirect Labor

(2,500 hrs. @ $8 per hr.)

=

20,000

$98,000

25

Applied manufacturing overhead to production based on a predetermined overhead rate of $8 per direct labor hour worked

28

Goods costing $20,000 were completed in the factory and were transferred to finished goods.

30

Goods costing $16,000 were sold for $23,000 on account.