Answer:
A. Dr materials inventory $18,000
Cr Accounts payable $18,000
B. Dr Factory labor $40,000
Cr Factory wages payable $31,000
Cr Employer Payroll Taxes Payable $9,000
C. Dr Manufacturing overhead $15,300
Cr Prepaid Property Taxes $2,700
Cr Accumulated Depreciation-Buildings $9,500
Cr Utilities Payable $3,100
Explanation:
Preparation of the journal entries for each type of manufacturing cost.
A. Dr materials inventory $18,000
Cr Accounts payable $18,000
(Being the Purchased of raw materials on account)
B. Dr Factory labor $40,000
Cr Factory wages payable $31,000
Cr Employer Payroll Taxes Payable $9,000
(Being to record Incurred factory labor)
C. Dr Manufacturing overhead $15,300
($2,700+$9,500+$3,100)
Cr Prepaid Property Taxes $2,700
Cr Accumulated Depreciation-Buildings $9,500
Cr Utilities Payable $3,100
(Being to record Manufacturing overhead)
