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Raw Materials $40,000

Work in Process $18,000

Finished Goods $35,000

The company applies cost to jobs on the basis of Direct labor Hours. For the current year the company's Pre Determined Overhead rate is $16.25 Per direct labor hour was based on a cost formula that estimated $650,000 of total manufacturing overhead for an estimated activity level of 40,000 direct labor hours.

Raw Materials purchased on Account $510,000

Raw Materials used in Production $480,000 All of the raw materials were used as Direct Materials.

The following costs were accrued for employee services: Direct labor $600,000 Indirect Labor $150,000 selling & Admin $240,000

Incurred various selling & admin, travel, finished goods warehousing $367,000

various manuf overhead, depreciation, insurance utilities $500,000

Manuf Overhead cost was applied to Production. The company actually worked 41,000 direct labor hours on all jobs during the year.

Job Costing 1,680,00 to manufacture according to job sheets were completed during the year.

Jobs were sold on account to customers during the year for a total of 2,800,000. The jobs cost 1,690,000 to manufacture according to their job cost sheets

Here is my question for which the answer does not seem to appear in Chegg :)

What is journal entry to Record the raw materials used in production?

I am given a general journal ledger with Dr/ Cr to record this on. I believe it is a credit of $480,000 but want to be that that is correct and nothing else should be recorded in the Journal Entry. Thanks!

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