Explanation:
The journal entries are as follows
1. Raw materials inventory A/c Dr $81,000
To Accounts payable A/c $81,000
(Being the raw material purchase on account is recorded)
2. Work in process inventory A/c Dr $59,800
To Raw materials inventory A/c $59,800
(Being the direct material used is recorded)
3. Work in progress A/c Dr $18,650
To Wages payable A/c $18,650
(Being the direct labor used is recorded)
4. Work in progress A/c Dr $25,177.50
To Manufacturing overhead A/c $25,177.50
(Being the applied overhead is recorded)
It is computed below:
= $18,650 × 135%
= $25,177.50