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30 June, 00:16

During January, its first month of operations, Dieker Company accumulated the following manufacturing costs; raw materials $4,800 on accounts, factory labor $7,900 of which $5,400 relates to factory wages payable and $2,500 relates to payroll taxes payable, and utilities payable $2,700.

Prepare separate journal entries for each type of manufacturing cost.

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  1. 30 June, 02:43
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    J1

    Work - In - Process $4,800 (debit)

    Raw Materials $4,800 (credit)

    J2

    Work - In - Process $7,900 (debit)

    Salaries and Wages Payable $5,400 (credit)

    Payroll taxes payable $2,500 (credit)

    J3

    Work - In - Process $2,700 (debit)

    Utilities Payable $2,700 (credit)

    Explanation:

    All cost accumulations to be done in the Work - In - Process Account.
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