Knowledge Check For each of the five transactions described below, use the dropdown boxes to indicate which account should be debited and which account should be credited. Debit Credit Transaction 1. Direct materials are issued into production for a specific job. 2. Salary of the Production Supervisor is payable. 3. Lubricating oil, waste cotton, and solder are used in the factory 4. The wages of direct laborers who worked on a particular job are payable Manufacturing overhead is applied to jobs using a predetermined overhead 5 rate Cost of Goods Sold Direct Labor Finished Goods Manufacturing Overhead Raw Materials Salaries and Wages Pavable Finished Goods Manufacturing Overhead Raw Materials Salaries and Wages Payable Work in Process