Prepare summary journal entries to record the following transactions for a company in its first month of operations. Raw materials purchased on account, $96,000. Direct materials used in production, $41,000. Indirect materials used in production, $18,600. Paid cash for factory payroll, $40,000. Of this total, $32,000 is for direct labor and $8,000 is for indirect labor. Paid cash for other actual overhead costs, $8,000. Applied overhead at the rate of 120% of direct labor cost. Transferred cost of jobs completed to finished goods, $60,000. Sold jobs on account for $85,000 g(2). The jobs had a cost of $60,000 g(1).NoTransactionGeneral JournalDebitCredit 1a. Raw materials inventory110,000
1 Accounts payable
2b(1).Work in process inventory
2 Raw materials inventory
3b(2).Factory overhead
3 Raw materials inventory
4c. Work in process inventory
4 Factory overhead
4 Cash
5d. Factory overhead
5 Cash
6e. Work in process inventory
6 Factory overhead
7f. Finished goods inventory
7 Work in process inventory
8g(1).Cost of goods sold
8 Finished goods inventory