From the following list of accounts, record the account(s) to be debited and credited for each of
Question:
From the following list of accounts, record the account(s) to be debited and credited for each of the transactions below. Assume that these transactions occur in a company that utilizes a process cost accounting system.
AccountsAccounts
Cost of Goods Sold Payroll
Factory Overhead Various Credits
Factory Overhead—Mixing Accounts Payable
Factory Overhead—Blending Work in Process—Mixing
Finished Goods Work in Process—Blending
Materials
Transaction | Debit | Credit |
1. Materials and supplies purchased on account.. | Materials | Accounts Payable |
2. Direct materials issued to both departments and supplies issued to the factory....................... | Work in Process-Mixing | Materials |
3. Direct labor cost incurred in both departments and indirect labor in the factory | | |
4. Other factory costs incurred | | |
5. Factory overhead distributed to both departments..... | | |
6. Factory overhead applied to production in both departments................ | | |
7. Units transferred from Mixing to Blending..... | | |
8. Units completed in Blending and transferred | | |
9. Units sold (ignore recording the revenue on the sale) | | |
Intermediate Accounting
ISBN: 978-0324592375
17th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen