Answer:
(a) Dr Raw Materials Inventory $17,500
Cr Accounts Payable $17,500
(b) Dr Factory Labor $39,900
Cr Employer Payroll Taxes $9,100
Cr Factory Wages Payable $30,800
(c) Dr Manufacturing Overhead $16,170
Cr Prepaid Property Taxes $2,770
Cr Utilities Payable $3,500
Cr Accumulated Depreciation $9,900
Step-by-step explanation:
Preparation of the journal entries for each type of manufacturing cost.
(a) Dr Raw Materials Inventory $17,500
Cr Accounts Payable $17,500
(To record Purchases of raw materials on account)
(b) Dr Factory Labor $39,900
Cr Employer Payroll Taxes $9,100
Cr Factory Wages Payable $30,800
(To record factory labor costs)
(c) Dr Manufacturing Overhead $16,170
($2,770+$3,500+$9,900)
Cr Prepaid Property Taxes $2,770
Cr Utilities Payable $3,500
Cr Accumulated Depreciation $9,900
(To record overhead costs)