Question

Indicated the titles of the accounts to be devited and credited in recording the selected operations given below by inserting the letter or letters of the account titles listen in the appopriate columns. (Do not record the amounts.)

A. Accounts Payable B. Accounts Receivable C. Cash D. Cost of Goods Sold E. Factory Overhead (Dept A)

F. Factory Overhead (Dept B) G. Finished Goods H. Materials I. Sales J. Wages Payable K. Work in Process (Dept A) L. Work in Process (Dept B)

TWO COLUMNS TO THE RIGHT ARE FOR DEBIT/CREDIT (IN THAT ORDER)

1 Materials requisitioned by Department A, $52,000, for use directly in the manufacture of the product	___	___
2. Labor used in Department A, $18,000, of which $12,500 was used directly in the manufacture of the product	___	___
3. Factory overhead applied to prodcution in Department A, $1.50 per machine hour	___	___
4. Goods finished in Department A and transferred to Department B, $85,300	___	___
5. Goods finished in Department B and transferred to Department A, $69,100	___	___
6. Cost of finished Goods Sold	___	___

Answer 1

Debit

Credit

1. Material requisition by Deptt A for use directly in manufacture

Work in Process (A)

Material

2. labour used Deppt A , of which 12500 is directly in manufacture

Work in Process (A)

Wages payable

3. factory OH applied to Deptt A

Work in Process (A)

Factory Overheads (A)

4. Goods finished in Deppt A transferred to Deppt. B

Work in Process (B)

Work in Process (A)

5. Goods finished from Deptt B transferred to deptt A.

Work in Process(A)

Work in Process (B)

6. Cost of finished goods sold

Cost of Goods sold

Finished Goods