Granger Products recorded the following transactions for the just completed mont

Question

Granger Products recorded the following transactions for the just completed month. The company had no beginning inventories. a. $75,000 in raw materials were purchased for cash. b. $73,000 in raw materials were requisitioned for use in production. Of this amount, $67,000 was for direct materials and the remainder was for indirect materials. c. Total labor wages of $152,000 were incurred and paid. Of this amount, $134,000 was for direct labor and the remainder was for indirect labor. d. Additional manufacturing overhead costs of $126,000 were incurred and paid. e. Manufacturing overhead costs of $178,000 were applied to jobs using the company

Explanation / Answer

Debit Credit a) Purchase ( Raw Material) A/c Dr $75000 To Cash $75000 ( Being Raw Material Purchase) b) No Entry in the Financial Accounting C) Wages A/c Dr $134000 To Cash $152000 ( Being Labour Charges Paid) Salary A/c Dr $18000 To Cash $18000 ( Being Labour Charges Paid) d) Manufacturing Overhead A/c Dr $126000 To Cash $126000 ( Being Manufacturing Overhead Paid) e) No Entry in the Financial Accounting f) Customer A/c Dr Sale Price To Sale A/c Sale Price ( Being Raw Material Purchase) g) No Entry in financial accounting

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