1. Begin by journalizing the entry for the purchase of materials on account.
2. Next, journalize the entry to record raw materials used in production.
3. Finally, journalize the entry to record the labor incurred in production but not yet paid.

$ 57,000 Purchases of materials, on account Materials requisitions: Direct materials 39,500 Indirect materials 500 Labor incurred (not yet paid): Direct labor 20,300 1,260 Indirect labor