Question

During the current month, Wacholz Company incurs the following manufacturing costs. A) Purchased raw materials of $17,600 on account. B) Incurred factory labor of $41,400. Of that amount, $30,400 relates to wages payable and $11,000 relates to payroll taxes payable. C) Factory utilities of $3,700 are payable, prepaid factory property taxes of $2,530 have expired, and depreciation on the factory building is $8,200.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 CreditABCRequired:1. Purchases of raw materials on account.2. To record factory labor costs.3. To record overhead costs.

Answer 1

Answer:

The journal entries are shown below.

Explanation:

According to the scenario, the journal entries for following are given below:

a. Raw material inventory A/c Dr     $17,600

To Accounts payable A/c        $17,600

(Being raw material is purchased on account recorded)

b. Factory labor A/c Dr      $41,400

To Factory wages payable       $30,400

To Payroll taxes payable          $11,000

(Being expenses of factory labor cost is recorded)

c. Manufacturing overhead A/c Dr    $14,430

To Factory utility payable A/c    $3,700

To Prepaid factory property taxes A/c    $2,530  

To Factory building - accumulated depreciation    $8,200

(Being manufacturing overhead cost for factory recorded)