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Journalize the following transactions for Malone Custom Furniture Manufacturing: (8 pts)

a. Purchased 50,000 feet of lumber (materials) at a cost of $1.34 per board foot on account.

b. Materials requisitioned $110,000; of which, $85,000 were direct materials and the remaining were for general factory use (indirect).

c. Prepared factory payroll $89,000; of which, $70,000 was for furniture laborers and the remaining was for factory supervisors and janitors (indirect).

d. Malone estimates that total factory overhead costs will be $660,000 for the year and direct labor hours (activity base) will be 100,000.

Determine the predetermined overhead allocation rate: (1 pts)

_________________ / Direct Labor Hour

The customer furniture jobs for the period have incurred 16,000 hours of direct labor. Journalize the entry to apply factory overhead costs at the predetermined overhead allocation rate just computed.

e. Depreciation on factory equipment incurred of $7500.

f. Received a bill for the property taxes owed on the factory of $3500.

g. Received utilities bill on the headquarters building for $990. (Hint: What would you normally record as a journal entry for a utilities bill?)

Item	Accounts	Debit	Credit
A
B
C
D
E
F
G

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