Almeda Products, Inc., uses a job-order costing system. The company's inventory balances on April 1, the start of its fiscal year, were as follows:
During the year, the following transactions were completed: a. Raw materials were purchased on account, 170,000 . b. Raw materials were issued from the storeroom for use in production, 180,000(80% direct and 20% indirect). c. Employee salaries and wages were accrued as follows: direct labor, 200,000 ; indirect labor, 82,000 ; and selling and administrative salaries, 90,000 . d. Utility costs were incurred in the factory, 65,000 . e. Advertising costs were incurred, 100,000 . f. Prepaid insurance expired during the year, 20,000(90% related to factory operations, and 10% related to selling and administrative activities). g. Depreciation was recorded, 180,000(85% related to factory assets, and 15% related to selling and administrative assets). h. Manufacturing overhead was applied to jobs at the rate of 175% of direct labor cost. i. Goods that cost 700,000 to manufacture according to their job cost sheets were transferred to the finished goods warehouse. j. Sales for the year totaled 1,000,000 and were all on account. The total cost to manufacture these goods according to their job cost sheets was 720,000 .
(a) Prepare journal entries to record the transactions for the year.