Question

Present journal entries (account titles only) for each of the following transactions:

a. Purchased material on account.
b. Recorded wages payable earned but not paid.
c. Requisitioned both direct material and indirect material.
d. Assigned direct and indirect labor costs.
e. Recorded factory depreciation and accrued factory property tax
f. Applied manufacturing overhead to production.
g. Completed work on products
h. Sold finished goods on account.

Answer 1

Present journal entries (account titles only)

a.

Raw Materials (debit)

Accounts Payable (credit)

purchases of materials on account

b.

Wages Expenses (debit)

Wages Payable (credit)

wages not yet paid

c.

Work In Process ; Direct Materials (debit)

Work In Process ; Direct Materials (debit)

Raw Materials (credit)

Assignment of direct and indirect material costs to production.

d.

Work In Process ; Direct Labor (debit)

Work In Process ; Direct Labor (debit)

Raw Materials (credit)

Assignment of direct and indirect labor costs to production.

e.

Work In Process ; Depreciation - factory (debit)

Work In Process ; factory property tax (debit)

Accumulated Depreciation - factory (credit)

Property Tax Payable (credit)

Factory depreciation and accrued factory property tax

f.

Work In Process (debit)

Overheads (credit)

Overheads Applied

g.

Finished Goods (debit)

Work In Process (credit)

Completed work on products

h.

Accounts Receivable (debit)

Costs of Sales (debit)

Sales Revenue (credit)

Finished Goods (credit)

Sell of finished goods on account.

Step-by-step explanation:

See the journal entries (account titles only) with narrations that i have prepared above.