Answer:
(a) Dr Raw material 18,500
Cr Account payable 18,500
(b) Dr Factory labor 38,900
Cr Factory wages payable 30,700
Cr Factory employer taxes payable 8,200
(c) Dr Manufacturing overhead 15,100
Cr Utilities payable 3,000
Cr Prepaid property taxes 3,000
Cr Accumulated depreciation-Building 9,100
Explanation:
Preparation of the journal entries for each type of manufacturing cost.
(a) Preparation of the journal entry for the Purchases of raw materials on account
Dr Raw material 18,500
Cr Account payable 18,500
( To record purchase raw material)
(b) Preparation of the journal entry To record factory labor costs
Dr Factory labor 38,900
Cr Factory wages payable 30,700
Cr Factory employer taxes payable 8,200
(To record factory labor)
(c) Preparation of the journal entry To record overhead costs
Dr Manufacturing overhead 15,100
(3,000+3,000+9,100)
Cr Utilities payable 3,000
Cr Prepaid property taxes 3,000
Cr Accumulated depreciation-Building 9,100
(To record overhead)
