Chapter 19, Problem 4E

Exercise 19-4
Recording product costs P1 P2 P3
Starr Company reports the following information for August.

Raw materials purchased on account............. $76,200
Direct materials used in production.............. $48,000
Factory wages earned (direct labor).............. $15,350
Overhead rate............................. 120% of direct labor cost
Prepare journal entries to record the following events.

1. Raw materials purchased.
2. Direct materials used in production.
3. Direct labor used in production.
4. Applied overhead.