Answer:
<u>Direct Materials T - Account</u>
Debit :
Cash $306,000
Totals $306,000
Credit:
Work In Process $306,000
Totals $306,000
<u>Direct Labor T - Account</u>
Debit :
Cash $161,000
Totals $161,000
Credit:
Work In Process $161,000
Totals $161,000
<u>Overhead T - Account</u>
Debit :
Cash $652,800
Totals $652,800
Credit:
Work In Process :
Materials handling ( $ 16 × 3,900 pounds) $62,400
Quality inspections ( $ 240 × 760 inspections) $182,400
Machine setups ( $ 2,700 × 50 setups) $135,000
Running machines ( $ 21.00 × 13,000 hours) $273,000
Totals $652,800
<u>Work In Process T - Account</u>
Debit :
Direct Materials $306,000
Direct Labor $161,000
Overheads $652,800
Totals $1,119,800
Credit:
Finished Goods $1,119,800
Totals $1,119,800
Explanation:
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<u>Direct Materials T - Account</u>
Accumulates Material costs used in manufacturing process
<u>Direct Labor T - Account</u>
Accumulated labor costs used in manufacturing process
<u>Overhead T - Account</u>
Accumulated Overhead costs incurred in manufacture
<u>Work In Process T - Account</u>
Accumulates total costs used in manufacture and transfers the cost to Finished Goods inventory
