Cost Accounting 205 Exa Name Date Part 2. Journalize manufacturing cost transactions The Texas Company is a manufacturer of fire alarm equipment. During the month of July 2006, the firm had the following transactions and incurred the following costs: 1. Raw materials were purchased on credit for $30,000 b. Direct materials costing $15,000 and indirect materials costing 57.000 were used during the month c. Factory wages paid during the month totaled $23,650. The deductions were: social security taxes, $1,000; medicare taxes, 5200; federal income taxes, $1,522; and group insurance premiums, $320. d. Direct labor costs were $40,000 and indirect labor costs were $6,627, as shown on the summary of factory wages for the month