Manufacturing reports the following data for the month: Purchases of raw materials, on account $55,250 Materials requisitions: Direct materials 49,750 Indirect materials 3,700 Labor incurred (not yet paid) : Direct labor 51,000 Indirect labor 2,500 Journalize the entries relating to materials and labor. Omit explanations.

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Business

Kadence Randall

16 October, 03:06

Manufacturing reports the following data for the month: Purchases of raw materials, on account $55,250 Materials requisitions: Direct materials 49,750 Indirect materials 3,700 Labor incurred (not yet paid) : Direct labor 51,000 Indirect labor 2,500 Journalize the entries relating to materials and labor. Omit explanations.

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Alvarado · Answer 1

Journal 1

Direct Materials $49750 (Debit), Indirect Materials $3700, (Debit) Direct labor $ 51000 (Debit), Indirect labor $ 2500 (Debit), Manufacturing Overhead Account $106960 (Credit)

Journal 2

Manufacturing Overhead Account $106960 (Debit), Accounts Payable $106960

Explanation:

Journal 1

Materials and Labor (both direct and indirect) resource acquired shows an accumulation of resources needed for manufacturing process.

Therefore these resources are being recorded in their respective accounts and transferred to manufacturing overhead account.

Journal 2

Both materials and Labor acquired for manufacturing process are still owing. The journal represent a present obligations in settlement of the Manufacturing overhead (Both for Materials and Labor)