Answer:
1. Raw materials purchased.
Raw Materials Account $ 76,200 (debit)
Account Payable $ 76,200 (credit)
2. Direct materials used in production.
Work In Progress Account $48,000 (debit)
Raw Materials Account $48,000 (credit)
3. Direct labor used in production.
Work In Progress Account $15,350 (debit)
Wages and Salaries $15,350 (credit)
4. Applied overhead.
Work In Progress Account $18,360 (debit)
Manufacturing Overhead Account $18,360 (credit)
Explanation:
1. Raw materials purchased.
Raw Materials Account $ 76,200 (debit)
Account Payable $ 76,200 (credit)
Recognise the Assets of Raw Materials and a Liability - Account Receivable
2. Direct materials used in production.
Work In Progress Account $48,000 (debit)
Raw Materials Account $48,000 (credit)
De-recognise the Raw Materials used in production and recognise the cost in Work In Progress Account
3. Direct labor used in production.
Work In Progress Account $15,350 (debit)
Wages and Salaries $15,350 (credit)
Recognise the labor cost in Work In Progress Account and de-recognise the Wages and Salaries Account with the amount applied to production
4. Applied overhead.
Work In Progress Account $18,360 (debit)
Manufacturing Overhead Account $18,360 (credit)
De-recognise the Manufacturing Overheads used in production and recognise the cost in Work In Progress Account
