Answered

Discover answers to your questions with Westonci.ca, the leading Q&A platform that connects you with knowledgeable experts. Discover precise answers to your questions from a wide range of experts on our user-friendly Q&A platform. Join our platform to connect with experts ready to provide precise answers to your questions in different areas.

During the current month, Ringling Company incurs the following manufacturing costs:
(a) Raw material purchases of $4,200 on account.
(b) Incurs factory labor of $18,000. Of that amount, $15,000 relates to wages payable and $3,000 relates to payroll taxes payable.
(c) Factory utilities of $2,200 are payable, prepaid factory insurance of $1,800 has expired, and depreciation on the factory building is $3,500.
Prepare journal entries for each type of manufacturing cost.

Sagot :

Zviko

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.

Thanks for using our platform. We're always here to provide accurate and up-to-date answers to all your queries. We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. Westonci.ca is committed to providing accurate answers. Come back soon for more trustworthy information.