Prepare journal entries for each type of manufacturing cost.
(a) Raw material purchases of $4,200 on account.
|
Raw Materials Inventory |
4,200 |
|
|
Accounts Payable |
4,200 |
(b)Incurs factory labor of $18,000. Of that amount, $15,000 relates to wages payable and $3,000 relates to payroll taxes payable.
|
Factory Labor |
18,000 |
|
|
Factory Wages Payable |
15,000 |
|
|
Employer Payroll Taxes Payable |
3,000 |