Manufactoring Overhead

Factory Wages Payable

Accounts Payable

COGS

WIP

Raw Materials

Finished Goods

Assume we have a job to make 250 hamburgers. A patty cost $1, and buns cost.50. A hamburger has 1 patty and 1 bun. A double decker uses 2 patties and 1 bun (assume it's the same bun). We will go to the store and buy the materials as needed on account. The cook's pay is $10 per hour and spends 2 hours making the hamburgers. The manager's salary for the day is $100. Purchasing - DR Manufacturing Overhead Purchasing - CR Choose]