Question

Camelia Company makes artificial flowers and reports the following data for the month. (Click the icon to view the data.) Journalize the entries relating to materials and labor. (Record debits first, then credits. Exclude explanations from journal entries.) Begin by journalizing the entry for the purchase of materials on account. Date Accounts Debit Credit A Data Table $ 53,000 Purchases of materials, on account Materials requisitions: Next, journalize the entry to record raw materials used in production. Direct materials 41,800 Indirect materials 1,000 Date Accounts Debit Credit Labor incurred (not yet paid): Direct labor 23,500 1,260 Indirect labor Print Done Finally, journalize the entry to record the labor incurred in production but not yet paid.

Answer 1

Ans:

1)	Raw materials inventory	$          53,000
	Accounts payable		$       53,000
	(To record the materials purchased on Account)
2)	WIP inventory	$          41,800
	Manufacturing or Factory overhead	$                1000
	Raw materials inventory		$       42,800
	(to record the acquisition for direct &indirect materials)
3)	WIP inventory	$          23,500
	Manufacturing or Factory overhead	$            1,260
	Salaries and wages payable		$       24,760
	(To record the total wages incurred but not yet paid)