Explanation Prepare two summary journal entries for the given listed accounts by illustrating a transaction that would cause the account to be debited in the first entry and by illustrating a transaction that would cause the account to be credited in the second entry. a. Materials Inventory: Date Accounts title and explanation Debit ($) Credit ($) Material inventory xxx Accounts payable xxx ( To record the purchase of direct materials on account.) (Table 1) Material inventory is an asset and there is an increase value of an asset. Hence, debit the materials inventory account. Accounts payable is a liability and there is an increase in the value of liability. Hence, credit the accounts payable account. Date Accounts title and explanation Debit ($) Credit ($) Work in process inventory xxx Material inventory xxx ( To record the cost of direct material s used) (Table 2) Work in process inventory is an asset and there is an increase in the value of an asset. Hence, debit the work in process inventory account. Material inventory is an asset and there is a decrease value of an asset. Hence, credit the materials inventory account. b. Direct labor: Date Accounts title and explanation Debit ($) Credit ($) Direct labor Cash ( To record factory payroll paid to direct workers) (Table 3) Direct labor is an asset and there is an increase in the value of an asset. Hence, debit the direct labor account. Cash is an asset and there is a decrease value of an asset. Hence, credit the cash account. Date Accounts title and explanation Debit ($) Credit ($) Work in process inventory xxx Direct labor xxx ( To record the cost of direct labor applied to production of the period) (Table 4) Work in process inventory is an asset and there is an increase in the value of an asset. Hence, debit the work in process inventory account. Direct labor is an asset and there is a decrease value of an asset. Hence, credit the direct labor account...

Gen Combo Looseleaf Financial And Managerial Accounting; Connect Access Card

18th Edition

ISBN: 9781260149197

Author: williams

Publisher: MCG

See similar textbooks

Question

Chapter 17, Problem 8BE

To determine

Prepare two summary journal entries for the listed accounts.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Chapter 17, Problem 7BE

Chapter 17, Problem 9BE

Students have asked these similar questions

Need your help with Question

Provide answer

Give me solution with step by step calculation

Chapter 17 Solutions

Gen Combo Looseleaf Financial And Managerial Accounting; Connect Access Card

Ch. 17 - Prob. 1STQ Ch. 17 - 2. When job costing is in use, underapplied...Ch. 17 - 3. Which of the following businesses would most...Ch. 17 - Prob. 4STQ Ch. 17 - 5. Which of the following are true regarding...Ch. 17 - 6. Which of the following would be the most...Ch. 17 - 7. Using ABC to allocate manufacturing overhead...Ch. 17 - 1. What is a cost accounting system? Ch. 17 - 2. What are the major objectives of a cost...Ch. 17 - 3. What factors should be taken into account in...

Knowledge Booster

Similar questions

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING
Accounting
ISBN:9781259964947
Author:Libby
Publisher:MCG
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education