During January, its first month of operations, Dieker Company accumulated the following manufacturing costs; raw materials $4,800 on accounts, factory labor $7,900 of which $5,400 relates to factory wages payable and $2,500 relates to payroll taxes payable, and utilities payable $2,700.

Prepare separate journal entries for each type of manufacturing cost.

Question

Business

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1 September, 22:34

During January, its first month of operations, Dieker Company accumulated the following manufacturing costs; raw materials $4,800 on accounts, factory labor $7,900 of which $5,400 relates to factory wages payable and $2,500 relates to payroll taxes payable, and utilities payable $2,700.

Prepare separate journal entries for each type of manufacturing cost.

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Answers (1)

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Howard Cannon · Answer 1

J1

Work - In - Process $4,800 (debit)

Raw Materials $4,800 (credit)

J2

Work - In - Process $7,900 (debit)

Salaries and Wages Payable $5,400 (credit)

Payroll taxes payable $2,500 (credit)

J3

Work - In - Process $2,700 (debit)

Utilities Payable $2,700 (credit)

Explanation:

All cost accumulations to be done in the Work - In - Process Account.