During the current month, Barnum Company incurs the following manufacturing costs: (a) Purchased raw materials of $18,000 on account. (b) Incurred factory labor of $40,000. Of that amount, $31,000 relates to wages payable and $9,000 relates to payroll taxes payable. (c) Factory utilities of $3,100 are payable, prepaid factory property taxes of $2,700 have expired and depreciation on the factory building is $9,500. Required: Prepare journal entries for each type of manufacturing cost.
During the current month, Barnum Company incurs the following manufacturing costs: (a) Purchased raw materials of $18,000 on account. (b) Incurred factory labor of $40,000. Of that amount, $31,000 relates to wages payable and $9,000 relates to payroll taxes payable. (c) Factory utilities of $3,100 are payable, prepaid factory property taxes of $2,700 have expired and depreciation on the factory building is $9,500. Required: Prepare journal entries for each type of manufacturing cost.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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2. During the current month, Barnum Company incurs the following manufacturing costs :
(a) Purchased raw materials of $18,000 on account.
(b) Incurred factory labor of $40,000. Of that amount, $31,000 relates to wages payable and $9,000 relates to payroll taxes payable.
(c) Factory utilities of $3,100 are payable, prepaid factory property taxes of $2,700 have expired and depreciation on the factory building is $9,500.
Required:
Prepare journal entries for each type of manufacturing cost.
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