Prepare the required general journal entries to record the
following transactions for the Bell Company.
a. Purchased $40,000 of raw materials on account.
b. Used $12,000 of direct materials in the production department.
c. Used $5,000 of indirect materials.
Part 2) Prepare the required general journal entry to record the
following transactions for the Flaherty Company.
a. Incurred $95,000 of factory labor cost which is paid in cash.
b. Used $78,000 of direct labor in the production department.
c. Used $17,000 of indirect labor.
a. Raw materials inventory A/c. Dr. 40000$
To Accounts payable A/c. 40000$
(Being rawmaterial purchased on account)
b. Work in process inventory A/c. Dr. 12000$
To Raw materials inventory A/c. 12000$
(Being direct material used in production department)
c. Manufacturing overhead A/c. Dr. 5000$
To Raw materials inventory A/c. 5000$
(Being indirect material used)
a. Factory payroll A/c. Dr. 95000$
To cash A/c. 95000$
(Being labour cost paid in cash )
b.work in process inventory A/c Dr. 78000$
To factory payroll A/c. 78000$
(Being direct labour expense recorded)
c. Manufacturing overhead A/c. Dr. 17000$
To factory payroll A/c. 17000$
(Being indirect labour expense recorded)
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