Prepare summary journal entries to record the following transactions for a company in its first month of operations.
a. Raw materials purchased on account, $94,000.
b. Direct materials used in production, $40,500.
c. Indirect materials used in production, $25,000.
d. Paid cash for factory payroll, $70,000.
e. Of this total, $50,000 is for direct labor and $20,000 is for indirect labor.
f. Paid cash for other actual overhead costs, $7,875.
g. Applied overhead at the rate of 125% of direct labor cost.
h. Transferred cost of jobs completed to finished goods, $74,000.
i. Sold jobs on account for $105,000. The jobs had a cost of $74,000.
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