Question

Assuming a routine manufacturing activity, present journal entries (account titles only) for each of the following transactions:

a. Purchased material on account.

Description	Debit	Credit
AnswerAccounts payableAccounts receivableAccumulated depreciation-factoryCashCost of goods soldFinished goods inventoryManufacturing overheadMaterials inventoryProperty taxes payableSalesWages payableWork in process inventory
AnswerAccounts payableAccounts receivableAccumulated depreciation-factoryCashCost of goods soldFinished goods inventoryManufacturing overheadMaterials inventoryProperty taxes payableSalesWages payableWork in process inventory

b. Recorded wages payable (for indirect labor) earned but not paid.

Description	Debit	Credit
AnswerAccounts payableAccounts receivableAccumulated depreciation-factoryCashCost of goods soldFinished goods inventoryManufacturing overheadMaterials inventoryProperty taxes payableSalesWages payableWork in process inventory
AnswerAccounts payableAccounts receivableAccumulated depreciation-factoryCashCost of goods soldFinished goods inventoryManufacturing overheadMaterials inventoryProperty taxes payableSalesWages payableWork in process inventory

c. Requisitioned both direct material and indirect material.

Description	Debit	Credit
Work in process inventory
AnswerAccounts payableAccounts receivableAccumulated depreciation-factoryCashCost of goods soldFinished goods inventoryManufacturing overheadMaterials inventoryProperty taxes payableSalesWages payableWork in process inventory
AnswerAccounts payableAccounts receivableAccumulated depreciation-factoryCashCost of goods soldFinished goods inventoryManufacturing overheadMaterials inventoryProperty taxes payableSalesWages payableWork in process inventory

d. Assigned direct and indirect labor costs.

Description	Debit	Credit
Work in process inventory
AnswerAccounts payableAccounts receivableAccumulated depreciation-factoryCashCost of goods soldFinished goods inventoryManufacturing overheadMaterials inventoryProperty taxes payableSalesWages payableWork in process inventory
AnswerAccounts payableAccounts receivableAccumulated depreciation-factoryCashCost of goods soldFinished goods inventoryManufacturing overheadMaterials inventoryProperty taxes payableSalesWages payableWork in process inventory

e. Recorded factory depreciation and accrued factory property tax.

Description	Debit	Credit
AnswerAccounts payableAccounts receivableAccumulated depreciation-factoryCashCost of goods soldFinished goods inventoryManufacturing overheadMaterials inventoryProperty taxes payableSalesWages payableWork in process inventory
Accumulated depreciation-factory
AnswerAccounts payableAccounts receivableAccumulated depreciation-factoryCashCost of goods soldFinished goods inventoryManufacturing overheadMaterials inventoryProperty taxes payableSalesWages payableWork in process inventory

f. Applied manufacturing overhead to production.

Description	Debit	Credit
AnswerAccounts payableAccounts receivableAccumulated depreciation-factoryCashCost of goods soldFinished goods inventoryManufacturing overheadMaterials inventoryProperty taxes payableSalesWages payableWork in process inventory
AnswerAccounts payableAccounts receivableAccumulated depreciation-factoryCashCost of goods soldFinished goods inventoryManufacturing overheadMaterials inventoryProperty taxes payableSalesWages payableWork in process inventory

g. Completed work on products.

Description	Debit	Credit
AnswerAccounts payableAccounts receivableAccumulated depreciation-factoryCashCost of goods soldFinished goods inventoryManufacturing overheadMaterials inventoryProperty taxes payableSalesWages payableWork in process inventory
AnswerAccounts payableAccounts receivableAccumulated depreciation-factoryCashCost of goods soldFinished goods inventoryManufacturing overheadMaterials inventoryProperty taxes payableSalesWages payableWork in process inventory

h. Sold finished goods on account.

Description	Debit	Credit
AnswerAccounts payableAccounts receivableAccumulated depreciation-factoryCashCost of goods soldFinished goods inventoryManufacturing overheadMaterials inventoryProperty taxes payableSalesWages payableWork in process inventory
AnswerAccounts payableAccounts receivableAccumulated depreciation-factoryCashCost of goods soldFinished goods inventoryManufacturing overheadMaterials inventoryProperty taxes payableSalesWages payableWork in process inventory
To transfer cost to expense.
AnswerAccounts payableAccounts receivableAccumulated depreciation-factoryCashCost of goods soldFinished goods inventoryManufacturing overheadMaterials inventoryProperty taxes payableSalesWages payableWork in process inventory
AnswerAccounts payableAccounts receivableAccumulated depreciation-factoryCashCost of goods soldFinished goods inventoryManufacturing overheadMaterials inventoryProperty taxes payableSalesWages payableWork in process inventory
To record sale of goods.

i. Paid wages

Description	Debit	Credit
AnswerAccounts payableAccounts receivableAccumulated depreciation-factoryCashCost of goods soldFinished goods inventoryManufacturing overheadMaterials inventoryProperty taxes payableSalesWages payableWork in process inventory
AnswerAccounts payableAccounts receivableAccumulated depreciation-factoryCashCost of goods soldFinished goods inventoryManufacturing overheadMaterials inventoryProperty taxes payableSalesWages payableWork in process inventory
To pay wages earned.

Answer 1

As asked, journal entries are prepared for each given transaction only with the accounts:

Journal Entries
No.	Account Titles and Explanation	Debit	Credit
a)	Materials Inventory
	Accounts Payable
	(To record the purchase of materials on account)
b)	Factory Payroll
	Wages Payable
	(To record the wages payable)
c)	Work in Process Inventory (Direct materials amount)
	Manufacturing Overheads (Indirect materials amount)
	Materials Inventory
	(To record the requisition of direct and indirect materials into production)
d)	Work in Process Inventory (Direct labor amount)
	Manufacturing Overheads (Indirect labor amount)
	Factory Payroll
	(To record the requisition of direct and indirect labor into production)
e)	Manufacturing Overheads
	Accumulated Depreciation - Factory
	Property taxes payable
	(To record the factory depreciation and accrued factory property tax)
f)	Work in Process Inventory
	Manufacturing Overheads
	(To record the application of manufacturing overheads)
g)	Finished Goods Inventory
	Work in Process Inventory
	(To record the completion of work on products)
h)	Cost of Goods Sold
	Finished Goods Inventory
	(To record the transfer of costs to expense or cost of goods sold)
	Accounts Receivable
	Sales
	(To record the sale of goods)
i)	Wages Payable
	Cash
	(To record the payment of wages earned)