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During the current month, Tomlin Company incurs the following manufacturing costs.
(a) Purchased raw materials of $16,940 on account.
(b) Incurred factory labor of $38,528. Of that amount, $32,281 relates to wages payable and $6,247 relates to payroll taxes payable.
(c) Factory utilities of $3,108 are payable, prepaid factory property taxes of $2,008 have expired, and depreciation on the factory building is $8,322.
Prepare journal entries for each type of manufacturing cost. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
No. Account Titles and Explanation Debit Credit
(a)
(b)
(c)

Sagot :

abiolataiwo2015

Answer:

(a) Dr Raw materials inventory $16,940

Cr Accounts payable $16,940

(b) Dr Factory labor $38,528

Cr Factory wages payable $32,281

Cr Employer Payroll Taxes Payable $6,247

(c) Dr Manufacturing overhead $13,438

Cr Prepaid Property Taxes $2,008

Cr Accumulated Depreciation-Buildings $8,322

Cr Utilities Payable $3,108

Explanation:

Preparation of journal entries for each type of manufacturing cost.

(a) Dr Raw materials inventory $16,940

Cr Accounts payable $16,940

(b) Dr Factory labor $38,528

Cr Factory wages payable $32,281

Cr Employer Payroll Taxes Payable $6,247

(c) Dr Manufacturing overhead $13,438

($3,108+$8,322+$2,008)

Cr Prepaid Property Taxes $2,008

Cr Accumulated Depreciation-Buildings $8,322

Cr Utilities Payable $3,108

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