Transcribed Image Text: (To record use of direct materials in production) 4. Work in Process Inventory 791000 79100 (To record direct labor payroll) Manufacturing Overhead 690000 100069 (To record actual

Transcribed Image Text: (To record use of direct materials in production)
4.
Work in Process Inventory
791000
79100
(To record direct labor payroll)
Manufacturing Overhead
690000
100069
(To record actual manufacturing overhead)
6.
Work in Process Inventory
1071000
Manufacturing Overhead
107100
(To record applied manufacturing overhead)
7.
Finished Goods Inventory
2410000
241000
(To record transfer of completed goods to Finished Goods
Inventory)
8.
2398000
239800
(To record cost of goods sold for the period)
5. Transcribed Image Text: The following events occurred over the course of a year at Bagby Corp., which uses a job order costing system:
1. Direct materials purchases totaled $583,000. Bagby Corp tracks its direct materials separately from its indirect
materials. Purchases were made on account.
2. $132,000 of indirect materials were used in production. Bagby uses a separate Supplies Inventory account for indirect
materials.
3. $569,000 of direct materials were used in production.
4. The direct labor payroll was $791,000 (credit Wages Payable).
5. Other manufacturing overhead costs incurred during the year totaled $690,000.
6. Bagby applies overhead based on a predetermined overhead rate of $21 per machine hour. The company used 51,000
machine hours during the year.
7. During the year, Bagby transferred goods costing $2,410,000 into the Finished Goods Inventory account.
8. Bagby sold products with a manufacturing cost of $2,398,000 to customers during the year.