During the current month, Ringling Company incurs the following manufacturing costs:

(a)Raw material purchases of $4,200 on account.

(b)Incurs factory labor of $18,000. Of that amount, $15,000 relates to wages payable and $3,000 relates to payroll taxes payable.

(c)Factory utilities of $2,200 are payable, prepaid factory insurance of $1,800 has expired, and depreciation on the factory building is $3,500.

Prepare journal entries for each type of manufacturing cost.

In accumulating manufacturing costs, debit at least one of three accounts: Raw Materials Inventory, Factory Labor, and Manufacturing Overhead.

Manufacturing overhead costs may be recognized daily. Or manufacturing overhead may be recorded periodically through a summary entry.