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In: Accounting

During the current month, Cullumber Company incurs the following manufacturing costs. (a) Purchased raw materials of...

During the current month, Cullumber Company incurs the following manufacturing costs.

(a)		Purchased raw materials of $18,300 on account.
(b)		Incurred factory labor of $40,200. Of that amount, $32,400 relates to wages payable and $7,800 relates to payroll taxes payable.
(c)		Factory utilities of $3,600 are payable, prepaid factory property taxes of $2,940 have expired, and depreciation on the factory building is $9,000.

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)

	(Purchases of raw materials on account)
(b)


	(To record factory labor costs)
(c)



	(To record overhead costs)

Solutions

Expert Solution

SOLUTION :

GIVEN THAT INFORMATION ,

Purchased Rawmaterials = $18300

Labour = $4,0200

Wages payable = $32,400

Payroll taxes payable =$7,800

Factory utilities Payable = $3,600

Prepaid property Taxes Expired= $2,940

Depreciation On Factory Building = $9,000

Particulars

DEBIT ($)

CREDIT($)

a) Purchase of Raw materials on account

Raw Material On Account(inventory) a/c DR

To Accounts Payable a/c

(Being rawm aterial was purchased )

18,300

b) To record factory labour costs (Epenses)

Factory Labour a/c DR

To Factory wages payable a/c

, To payroll taxes payable

( Being factory labour cost was recored as expense )

40,200

32,400

7,800

c) To record Overhead costs (Expenses)

Manufacturing Overhead a/c DR

To Prepaid property taxes a/c

To accumalated depreciation a/c

To utilities payablea/c

( Being accumalated that manufacturing overhead )

15,540

2,940

9,000

3,600

THANNK YOU , PLEASE UPVOTE

ekkarill92 answered 1 year ago

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