 Job 14, 15 and 16 requested raw materials in this fashion. So if we add those up then, it adds up to 350. So working process here is going up by 350 and it's coming out of the raw materials. So if we look at the general ledger, we're gonna say, okay, raw materials is going up by 350. I mean, I'm sorry, raw materials is going down by the 350, 550,000 in it, minus the 350 to 200,000. And it's going into work and process, representing our jobs. So it went up from 83 by the 350,000 to 433, but this 350,000 represents all three allocations to all three jobs. It's not broken out for us in the general ledger or of course in the trial balance. That ties out to the trial balance, but I don't know which job, you know, if I sold those jobs, what is it related to? Therefore we need to allocate it to the jobs. Here's the materials, here's job 14 with 100. It's at 114 in terms of materials, labor, and then overhead adds up to total job of 141. Job 16, we're jumping down to 16, 80,000. Here's the 80,000, and that's a total job at this point of the 80,000. And then job 15, 170,000 bringing materials up to 188, plus the labor and overhead to 12. If we add up these three jobs, 141, 80, and to 12, we get to 433. That ties out to the 433 on the general ledger. That ties out to the 433 on the trial balance, of course. All right, next transaction, direct labor. All right, so remember, we have direct labor broken out by job now. We're able to apply the direct labor specifically to each job. We know the jobs that happen. So the journal entry related to labor is gonna be debit to work and process and a credit to cash, we're gonna say. Now when we think about labor, it's a little bit confusing because when we think about labor, we think about processing payroll. We're processing payroll. Well, for one, we're taking out the payroll liability and whatnot because we're simplifying this transaction. We don't wanna complicate things by thinking about payroll, but this is basically a payroll transaction. We're crediting cash because people earned money and we're debiting you would normally think wages expense because that's what we've probably done in the past, some kind of expense related to wages. That's because we used it in order to generate revenue in that time period. In this case, it's not an expense. It's gonna be part of the asset because we used their work to make the asset. So a lot of things that were expenses before are now part of the asset and we've gotta change our way of thinking for that reason. It's part of the accrual process, but many people just start to memorize what type of transactions are expenses and wages usually just falls into that category and we don't train ourselves to think, well, that's because of the matching principle and that we use the wages to help us generate revenue. And now it's not part of the matching principle because now we're using those in order to generate the asset. So we're gonna have to rethink a few things here. So we put in now this direct labor into the working process at the 218. Remember that, again, we combined all these to one number, 218, and that is now the ending balance in the working process is the 651, 651, but we need to know how it is by job again. So that 651 is not enough. We wanna know how it is by job. So if we actually sold the job, we would know. So if we allocate this out, 30,000 to job 14 brings it to 48 plus the materials, plus the overhead brings it to 170 fund, one, the 120 here brings it to 120, so the 80 plus the 120 total job, 200,000, the 68,000 to job 15, so the 188 plus the 84 and eight gives us the 280. So if we add up the three jobs, the 171, the 200, the 280, we come up to the 651, which of course ties out to the working process on the trial battle, which ties out to the working process on the general ledger. Next transaction, applied factory overhead based on a predetermined overhead rate. Now we'll talk about a predetermined overhead rate at a different time. This problem we're just gonna give the predetermined overhead rate. Why? What is the predetermined overhead rate? Well, remember that factory overhead is gonna have all the stuff that we're gonna put into factory overhead that we could not apply directly to a job. Things like the supervisor salary, things like depreciation on the factory, things like small materials like grout or something that it would just be too costly for us to track how much of it went to a particular job, but we do want to put it into the job somehow. So you might think, well, we could just allocate that evenly to each job. How many jobs is just estimated out allocated evenly? But the jobs are different in nature, remember. So the jobs are different sizes. So we have to figure out, okay, how can we allocate this stuff to the jobs using some kind of relevant allocation method? And so what we do is we usually find a cost driver and oftentimes that's gonna be direct labor. So why? Because direct labor jobs that have more direct labor, they would then have more cost allocated to them. They would be larger so you would think we would allocate more overhead. So we determined based on last year's numbers, based on the ratio of direct labor compared to the overhead, how much we should allocate to each job of overhead based on how much direct labor was in each job, we came out to 1 to 50%. Now, if we do the journal entry, then we're gonna say the job's gonna get working process 109 into working process. We're gonna credit factory overhead. So again, that 109 represents a bunch of different stuff that we're just kind of allocating in based on last year's numbers of all this kind of stuff that we just allocated out that we're gonna put into factory overhead.