The following events occurred over the course of a year at Vaughn Corp., which uses a job order costing system: 1. Direct materials purchases totaled $435,000. Vaughn Corp tracks its direct materials separately from its indirect materials. Purchases were made on account.
2. $233,000 of indirect materials were used in production. Vaughn uses a separate Supplies Inventory account for indirect materials.
3. $415,000 of direct materials were used in production.
4. The direct labor payroll was $972,013 (credit Wages Payable).
5. Other manufacturing overhead costs incurred during the year totaled $578,000.
6. Vaughn applies overhead based on a predetermined overhead rate of $15 per machine hour. The company used 50,000 machine hours during the year.
7. During the year, Vaughn transferred goods costing $2,075,000 into the Finished Goods Inventory account.
8. Vaughn sold products with a manufacturing cost of $2,006,000 to customers during the year.
(a)
Prepare journal entries to record these events