Selected transactions for Howell Landscaping Ltd are described below: • (a) Direct materials of $11,270 are requisitioned for jobs. • (b) The company rents a large area for storing equipment and inventory (e.g. bark, compost, timber, stones, etc.). Rent on the property of $12,500 is recorded as payable. • (c) For the period, actual overhead totalled $74,100 and applied overhead totalled $76,800. The difference is closed off to the income statement, not inventory. Note: The company uses job costing. Ignore GST. Required: Prepare journal entries for the selected transactions.
