The following accounts will be used in this problem:

A) Raw materials	H) Depreciation expense
B) Accounts payable	I) Finished goods
C) Cost of goods sold	J) Wages and salaries payable
D) Work in process	K) Prepaid insurance
E) Manufacturing overhead	L) Insurance expense
F) Wages and salaries expense	M) Advertising expense
G) Accumulated depreciation	N) Utility expense

Required:

Make journal entries to record the following transactions. (You may debit/credit more than one account.)

Example: Indirect labor cost is incurred.

Debit: E

Credit: J

1. Prepaid insurance expired on the factory building.

2. Finished goods are sold.

3. Raw materials are purchased on account.

4. Advertising costs are incurred.

5. Depreciation is recorded (60% on factory assets and 40% on selling and administrative assets).

6. Materials are used in production (80% direct materials and 20% indirect materials).

7. Utility costs are incurred in the selling and administrative offices.