Answer:
5. Recognized direct and indirect labor utilized.
Debit Work in Process Inventory and Manufacturing Overhead.
Credit Factory Labor
Direct labor is debited to Work in Process Inventory to demonstrate its direct contribution. Both are credited to the Factory Labor account.
6. The production department requested indirect materials for factory use.
Debit Manufacturing Overhead
Credit Raw Materials Inventory.
Since these materials are indirect, they fall within Manufacturing Overheads.
These were taken from the Raw Materials account, necessitating a credit.
8. Completed products were shifted to finished goods.
Debit Finished Goods Inventory
Credit Work in Process Inventory
Both accounts being asset accounts means when reducing one account, you credit it, and when increasing another, you debit it. Goods were moved from the Work in Process account, so it was credited.
10. Payment was made for previously purchased raw materials on account. (The response for this transaction is for the prior question).
Debit Accounts Payable
Credit Cash.
These raw materials were acquired on credit, making them a liability. Once they are paid, Accounts Payable must be reduced through a debit. Cash is credited since it represents an asset decreasing.
