Question: Bee Ltd. is a manufacturing company which uses normal job-order costing for its manufacturing processes. Some of the transactions and additional information for the period ending 30 June 2007 are as follows:
1. Raw materials used were $380,000.
2. Direct labour incurred were $360,000 (wage was paid at a rate of $15/hour). Wages are yet to be paid.
3. Manufacturing overhead was allocated at $20 per direct manufacturing labour hour.
4. Goods worth $940,000 were completed in 2007.
5. Goods worth $900,000 were sold.
Work-In-Process, 1 July 2006 = $20,000.
Finished goods, 1 July 2006 = $10,000.
Required: Write appropriate journal entries for each of the transactions above.