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Re$-$Tire produces bagged mulch from recycled tires. Production involves shredding tires and packaging the pieces in the Bagging

department. All direct materials enter in the Shredding process. A predetermined overhead rate of $165\%$ of direct labor costs is used in

both departments. The following describes production operations for October.

$20$

points

Direct materials used $($Shredding$)$

Direct labor used $($Shredding$)$

Direct labor used $($Bagging$)$

Costs transferred from Shredding to Baggin

Sales $($on credit$)$ for the month total $$430,000$ and cost of goods sold for the month is $$258,000.$

Prepare journal entries dated October $31$ to record October production activities for $(1)$ direct materials usage, $(2)$ direct labor usage, $(3)$

overhead applied, $(4)$ costs transfer from Shredding to Bagging, $(5)$ costs transfer from Bagging to finished goods, $(6)$ credit sales, and

$(7)$ cost of goods sold.

Journal entry worksheet

Record direct materials used in production.

Note: Enter debits before credits.

Journal entry worksheet

Record direct labor used in production, but not yet paid.

Journal entry worksheet

Journal entry worksheet

Record the transfer of goods from Shredding to Bagging.

Journal entry worksheet

Record the transfer of goods to finished goods.

Note: Enter debits before credits.

Journal entry worksheet

Journal entry worksheet

Record the cost of goods sold.

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