Question

Assuming a routine manufacturing activity, present journal entries (account titles only) for each of the following transactions: a. Purchased material on account. Description Debit Credit Answer Answer b. Recorded wages payable (for indirect labor) earned but not paid. Description Debit Credit Answer Answer c. Requisitioned both direct material and indirect material. Description Debit Credit Work in process inventory Answer Answer d. Assigned direct and indirect labor costs. Description Debit Credit Work in process inventory Answer Answer e. Recorded factory depreciation and accrued factory property tax. Description Debit Credit Answer Accumulated depreciation-factory Answer f. Applied manufacturing overhead to production. Description Debit Credit Answer Answer g. Completed work on products. Description Debit Credit Answer Answer h. Sold finished goods on account. Description Debit Credit Answer Answer To transfer cost to expense. Answer Answer To record sale of goods. i. Paid wages Description Debit Credit Answer Answer To pay wages earned.

Answer 1

Answer:

Explanation: Journal Entries

a. Purchased material on account

Debit: Materials Purchases

Credit: Account payable

b. Recorded wages payable

Debit: Wages

Credit: Wage payable

c. Requisitioned both direct material and indirect material.

Debit: Manufacturing overhead

Credit: Raw material inventory

d. Assigned direct and indirect labor costs.

Debit: Manufacturing overhead

Credit: Labour costs

e. Recorded factory depreciation

Debit : Depreciation expense

Credit: Accumulated depreciation

-accrued factory property tax.

Debit: Property tax expense

Credit: Accrued Tax

f. Applied manufacturing overhead to production.

Debit: Production expenses

Credit: manufacturing overhead

g. Completed work on products.

Debit: finished goods inventory

Credit: work in process inventory

h. Sold finished goods on account.

Debit: Account receivable

Credit: Sales

i. Paid wages

Debit: Wages

Credit: cash/bank