Answer:
1. Raw materials were purchased on account.
<em>Debit Raw Materials Inventory. </em>
<em>Credit Accounts Payable. </em>
Inventory was bought in credit so Payable is owed.
2. Issued a check to Dixon Machine Shop for repair work on factory equipment.
<em>Debit Manufacturing Overhead </em>
<em>Credit Cash</em>
Cash was used to pay for Indirect production work. Cash reduces Sonia credited.
3. Direct materials were requisitioned for Job 280.
<em>Debit Work in Progress Inventory </em>
<em>Credit Raw Material Inventory </em>
Transferred from Raw Materials so work may be done.
4. Factory labor was paid as incurred.
<em>Debit Factory Labor </em>
<em>Credit Cash </em>
Cash reduces again so is credited. Factory Labor is Expense that should be debited.
5. Recognized direct labor and indirect labor used.
<em>Debit Work in Progress Inventory </em>
<em>Debit Manufacturing Overhead </em>
<em>Credit Factory Labor </em>
Direct Labor falls under Work in Progress and Indirect Labor falls under Manufacturing Overhead.
6. The production department requisitioned indirect materials for use in the factory.
<em>Debit Manufacturing Overhead</em>
<em>Credit Raw Materials Inventory</em>
Indirect materials are an overhead.
7. Overhead was applied to production based on a predetermined overhead rate of $8 per labor hour.
<em>Debit Work in Progress Inventory </em>
<em>Credit Manufacturing Overhead</em>
8. Goods that were completed were transferred to finished goods.
<em>Debit Finished Goods </em>
<em>Credit Work in Progress Inventory</em>
9. Goods costing $80,000 were sold for $105,000 on account.
<em>Debit Cost of Goods Sold</em>
<em>Credit Inventory </em>
Then,
<em>Debit Accounts Receivable </em>
<em>Credit Sales</em>
10. Paid for raw materials purchased previously on account.
<em>Debit Accounts Payable</em>
<em>Credit Cash </em>
