Question - Farr Corporation had the following transactions during its first month of operations:

1. Purchased raw materials on account, $85,000.

2. Raw Materials of $30,000 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $6,000 was classified as indirect materials.

3. Factory labor costs incurred were $125,000 of which $100,000 pertained to factory wages payable and $25,000 pertained to employer payroll taxes payable.

4. Time tickets indicated that $104,000 was direct labor and $21,000 was indirect labor.

5. Overhead costs incurred on account were $112,000.

6. Manufacturing overhead was applied at the rate of 150% of direct labor cost.

7. Goods costing $135,000 are still incomplete at the end of the month; the other goods were completed and transferred to finished goods.

8. Finished goods costing $100,000 to manufacture were sold on account for $130,000.

Instructions - Journalize the above transactions for Farr Corporation in general journal form (ignore dates and posting references).