Manufacturing Costs - accounts Raw Materials Inventory...

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MANUFACTURING COSTS During the current month, Ringling Company incurs the following manufacturing costs:  (a)   Raw materials pu (b)   Used factory labor of $18,000. Of that amount, $15,000 relat $3,000 relates to payroll taxes payable. (c)   Factory utilities of $2,200 are payable, prepaid factory insura and depreciation on the factory building is $3,500. Prepare journal entries for each type of manufacturing cost. Solution Action Plan •   In accumulating manufacturing  costs, debit at least one of three 
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Unformatted text preview: 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. Raw Materials Inventory Accounts Payable (Purchases of raw materials on account) Factory Wages Payable Employee Payroll Taxes Payable (To record factory labor costs) Manufacturing Overhead Utilities Payable Prepaid Insurance Accumulated Depreciation (To record overhead costs)...
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Manufacturing Costs - accounts Raw Materials Inventory...

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