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14 August, 12:06

The company's revenue for the month totaled $950,000 from credit sales, and its cost of goods sold for the month is $540,000. Prepare summary journal entries dated October 31 to record its October production activities for (1) direct material usage, (2) direct labor incurred (3) overhead allocation, (4) goods transfer from production to finished goods, and (5) credit sales.

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  1. 14 August, 12:18
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    Journal Debit Credit

    Oct 31 Work in process inventory 522,000

    Raw materials inventory 522,000

    Oct 31 Work in process inventory 130,000

    Factory payroll payable 130,000

    Oct 31 Work in process inventory 227,500

    Factory overhead 227,500

    Oct 31. Finished goods inventory 595,000

    Work in process inventory 595,000

    Oct 31 Accounts receivable

    950,000

    Sales. 950,000

    Oct 31 Cost of goods sold 540,000 Finished goods inventory 540,000

    Overhead applied = $130,000 * 175% = $227,500
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