The following transactions are for Xavier, Inc. a manufacturer of tools used for finish carpentry. Prepare journal entries to record the following transactions and events for Xavier, Inc. The company uses a job order costing system.

a) Xavier, Inc. contacted their vendors and purchased raw materials on account for a total of $32,000.

b) When production was to begin, raw materials were requisitioned into the manufacturing process. This included $12,000 of direct materials and $9,200 of indirect materials.

c) Xavier, Inc. paid weekly factory payroll which totaled $20,000. They paid it in cash.

d) After that factory payroll was paid by Xavier, it was determined that $4,000 of that payroll was for indirect payroll, and the remaining amount was for direct labor.

e) Xavier Inc. paid other actual overhead costs totaling $590 in cash.

f) Xavier, Inc. then allocated overhead based on the direct labor recorded previously. The Company uses a pre-determined overhead rate of 65% of direct labor costs.

g) Xavier then determined that $6,400 of total jobs were completed and moved to finished goods.

h) Those jobs that had cost $6,400 were then sold by Xavier to customers. The jobs were sold on credit for $11,300.

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