Prepare Journal Entries to Record the Following Transactions

question 2

Essay

Prepare journal entries to record the following transactions:
Purchased $38,500 of raw materials on account.
Transferred $22,400 of direct materials and $6,350 of indirect materials into production.
Recorded $5,800 of direct labor and $7,630 of indirect labor.
Paid $3,200 for factory utilities.
Received and paid an advertising bill for $8,000.
Recorded $1,860 of depreciation on the factory equipment.
Manufacturing overhead of $18,500 was applied to production.
Completed product with a total cost of $39,750 and transferred it to the finished goods warehouse.
Closed the under- overapplied manufacturing overhead.The amount was deemed immaterial.
Sold product costing $17,240 for $26,500 on account.

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Definitions:

Factorial ANOVA

A statistical test used to determine the effect of two or more independent variables on a dependent variable at the same time, often used to analyze the interaction between factors.

F Statistic

A ratio used in ANOVA tests, comparing the variance between group means to the variance within groups to determine whether group means are significantly different from each other.

F Value

A statistic used in ANOVA tests to determine the ratio of variance between groups to variance within groups, helping to assess the significance of group differences.

Interaction Effect

Occurs in an experiment or statistical model when the effect of two or more variables on an outcome is not simply additive but dependent on the combination of variables.