During the current month, Tomlin Company incurs the following manufacturing cost

Question

During the current month, Tomlin Company incurs the following manufacturing costs. Purchased raw materials of $16,916 on account. Incurred factory labor of S40,974. of that amount, $30,116 relates to wages payable and $10,858 relates to payroll taxes payable. Factory utilities of S3,815 are payable, prepaid factory property taxes of $2,541 have expired, and depreciation on the factory building is S9,773. Prepare journal entries for each type of manufacturing cost. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Explanation / Answer

(a) Dr Raw Materials Inventory 16,916

cr Accounts Payable 16,916

(Purchases of raw materials on account)

b) Dr Factory Labor 40,974

Cr Factory Wages Payable 30,116

Cr Employer Payroll Taxes Payable 10,858

(To record factory labor costs)

(c)

Dr Manufacturing Overhead 16,129

Cr Utilities Payable 3,815

Cr Prepaid Factory property taxes 2,541

Cr Accumulated Depreciation 9,773

(To record overhead costs)

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