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Minstrel Manufacturing uses a job order costing system. During one month, Minstrel purchased $198,000 of raw materials on credit, issued materials to production of $195,000
Minstrel Manufacturing uses a job order costing system. During one month, Minstrel purchased $198,000 of raw materials on credit, issued materials to production of $195,000 of which $30,000 were indirect. Minstrel incurred a factory payroll of $150,000, of which $40,000 was indirect labor. Minstrel uses a predetermined overhead rate of 150% of direct labor cost. The journal entry to record the purchase of materials is: O Debit Raw Materials Inventory $198,000; credit Finished Goods Inventory $198.000 O Debit Raw Materials Inventory $198.000; credit Work in Process Inventory $198,000. O Debit Raw Materials Inventory $198,000: credit Accounts Payable $198.000, O Debit Work in Process Inventory $195,000 credit Raw Materials Inventory $195,000 Debit Work in Process Inventory $198.000. credit Accounts Payable $198.000
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