Question

During January, its first month of operations, Reyes Tool & Die accumulated the following manufacturing costs: raw materials $5.800 on account; factory labour $7,300, of which $5,500 relates to factory wages payable and $1,800 relates to payroll taxes payable: and utilities payable $2,100. Prepare separate journal entries for each type of manufacturing cost. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Answer 1

Solution:

Date	General Journal	Debit	Credit
Jan 31	Raw materials inventory a/c Dr	5,800
	To accounts payable a/c		5,800
Jan 31	Factory labour a/c Dr	7,300
	To factory wages payable a/c		5,500
	To Employer payroll taxes payable a/c		1,800
Jan 31	Manufacturing overhead a/c Dr	2,100
	To utilities payable a/c		2,100