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.

Question

Business

Harrison Porter

13 October, 05:10

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.

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Answers (1)

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Kathleen · Answer 1

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)