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Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please refer to the picture. The following information is available for ADT Company, which produces special-order security products and uses a

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**Note**: The following information applies to the questions displayed below.
The following information is available for ADT Company, which produces special-order security products and uses a job order costing system. Overhead is applied using a predetermined overhead rate of 55% of direct labor cost.
#### Inventories
| Inventory Type | Beginning of Period | End of Period |
| -------------- | -------------------- | ------------- |
| Raw materials | $29,000 | $59,000 |
| Work in process | $9,600 | $18,500 |
| Finished goods | $64,000 | $33,200 |
#### Costs Incurred for the Period
- **Raw materials purchases**: $181,000
- **Factory payroll**: $150,000
- **Factory overhead (actual)**
- Indirect materials used: $16,000
- Indirect labor used: $34,500
- Other overhead costs: $91,500
1. Raw materials purchases for cash.
2. Direct materials used.
3. Indirect materials used.
Prepare journal entries for the above transactions for the period.
---
**Journal Entry Worksheet**
Record the raw material purchases for cash.
**Note**: Enter debits before credits.
---
For more detailed steps on journal entries, please refer to the subsequent sections by clicking on the arrows.
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