For each of the accounts listed below, prepare two summary journal entries. In the first entry, illustrate a transaction that would cause the account to be debited. In the second entry, illustrate a transaction that would cause the account to be credited. Assume that perpetual inventory records are maintained.
Include a brief written explanation with each journal entry and use “XXX” in place of dollar amounts.
a. Materials Inventory
b. Direct Labor
c. Manufacturing Overhead
d. Finished Goods Inventory