Prepare journal entries for each type of manufacturing cost.
Factory utilities of $2,200 are payable, prepaid factory insurance of $1,800 has expired, and depreciation on the factory building is $3,500.
|
Manufacturing Overhead |
7,500 |
|
|
Utilities Payable |
2,200 |
|
|
Prepaid Insurance |
1,800 |
|
|
Accumulated Depreciation |
3,500 |
Review Question
When incurred, factory labor costs are debited to:
a.Work in Process.
b. Factory Wages Expense.
c. Factory Labor.
d. Factory Wages Payable.