Answer:
raw materials 86,000 debit
accounts payable 86,000 credit
--to record purchase of materials--
WIP 71,000 debit
overhead 13,000 debit
raw materials 84,000 credit
--to record use of materials--
WIP 102,400 debit
overhead 25,600 debit
cash 128,000 credit
--to record wages payment--
overhead 191,000 debit
accumulated depreciation-equipment 191,000 credit
--to record depreciaiton accumulated on equipment--
Explanation:
for materials and labor we do the distinction betwene direct and indirect. As one goes straight into WIP while the other is part of the acutal overehad.
indirect materials 84,000 - 71,000= 13,000
indirect labor 128,000 - 102,400 = 25,600
the depreciaiton which is a factory cost, weill go into factory overhead.
