Question

EA14.

Answer 1

Answer:

work in process    debit

  raw materials inventory  credit

--to record assignment of DM to work in process--

work in process   debit

 wages payable               credit

--to record assignment of Labor to work in process--

work in process    debit

 manufacturing overhead   credit

--to record assignment of MO to work in process--

Explanation:

We are n't given with numbers but we can determinate the account and were to post the value

a) Our materials stock decrease so we credited. We will debit WIP in order to balance the entry.

b) WIP as qualifies as assets (later it will become finished product that once sold will generate cash for the company) Thus, we need to debited. In the credit side there are two possible options:

if labor weren't paid then it will wages payable. If they were; we will credit cash to represent it.

c) for MO we credit for the allocate amount and debit WIP

At the end of the period, once we got the actual Manufacturing Overhead we will adjust