1 . purchased raw materials on account $ 46,300 .
2 . Raw materials of $ 36.000 were requisitioned to the factory . An analysis of the materials
3 . Factory labor costs incurred were $ 59,900 , of which $ 51,000 pertained to factory wages payable and $ 8,900 pertained to employer payroll taxes payable .
4 . Time tickets indicated that $ 54,000 was direct labor and $ 5,900 was indirect labor .
5 . Manufacturing overhead costs incurred on account were $ 80,500 . 6 . Depreciation on the company ' s office building was $ 8,100 .
7 . Manufacturing overhead was applied at the rate of 150 % of direct labor cost .
8 . Goods costing $ 88,000 were completed and transferred to finished goods .
9 . Finished goods costing $ 75,000 to manufacture were sold on account for $ 103,000 .
Instructions Journalize the transactions . E2-13
Tombert Decorating uses a job order cost system to collect the costs of its interior decorating business . Each client ' s consultation is treated as a separate job . Overhead is applied to each job based on the number of decorator hours incurred . Listed below are data for the current year .
Estimated overhead $ 960,000 Actual overhead $ 982,800 Estimated decorator hours 40,000 Actual decorator hours 40,500