The following is a list of manufacturing costs incurred by Denney
Manufacturing Co. during July:
Direct materials used....................................................... $21,000
Indirect materials used..................................................... 5,000
Direct labor employed...................................................... 15,000
Indirect labor employed.................................................... 3,000
Rent expense.................................................................... 4,000
Utilities expense............................................................... 1,200
Insurance expense........................................................... 500
Depreciation expense (machinery and equipment)......... 1,500
Prepare the journal entries to:
a. Charge the cost of materials to Work in Process and Factory Overhead.
b. Charge the cost of labor to Work in Process and Factory Overhead.
c. Record Factory Overhead costs.
d. Record the transfer of Factory Overhead to Work in Process.