Factory Ledger Entries. The following transactions were completed by The Sullivan Corporation, which

Factory Ledger Entries. The following transactions were completed by The Sullivan Corporation, which maintains both a factory ledger and a general ledger

(a) Materials purchased and received at the factory

$13,500

(b) Requisitions received and filled in the storeroom:

For direct materials

$12,300

For manufacturing supplies

4,000

$16,300

c) Paid the factory payroll for the week, as follows:

Direct labor

$10,000

Indirect labor

3,200

Superintendence

1,000

$14,200

(A factory payroll book is maintained at the factory. At the end of each week the factory payroll is reported to and paid by the general office. Provision for employees' FICA tax in the amount of $639 and 10% income tax is made on the general office books. The only payroll entry on the factory books is one distributing the payroll to the appropriate accounts and crediting General Ledger. The employer's factory payroll taxes are treated as factory overhead. The state unemployment insurance rate is 1 .8%, the federal unemployment insurance rate is .5% and the employer's FICA tax is $639.)

(d) Direct materials returned to the storeroom, $800.

(e) A transfer voucher from the general office showed the following expenses to be recorded:

Insurance on factory building and equipment

(prepaid account on general books)

$250

Heat, light, and power

325

Taxes on factory building

75

Depreciation of machinery

240

Depreciation of factory building

100

990

(f) Factory overhead is applied to production at the rate of 125% of direct labor cost.

(g) Work completed during the week, $28,000.

(h) Goods costing $32,500 to produce were sold for $42,000.

Required: Journal entries to record the above transactions on the general office books and on the factory books. Use only one work in process account. All inventory accounts and Factory Overhead are a part of the factory ledger; liability accounts, Sales, and Cost of Goods Sold are a part of the general ledger.