Question

During the current month, Ringling Company incurs the following manufacturing costs:

Answer 1

Answer:

Part a

Debit  : Raw material $4,200

Credit : Accounts Payable $4,200

Part b

Debit  : Salaries $18,000

Credit : Salaries Payable $18,000

Part c

Debit  : Factory utilities $2,200

Debit  : Factory Insurance $1,800

Debit  : Depreciation  $3,500

Credit : Overheads $7,500

Explanation:

The journal entries for each type of manufacturing cost have been prepared above.