Identify the accounts in which each of the following transactions for Acorn Furn

Question

Identify the accounts in which each of the following transactions for Acorn Furniture, a custom manufacturer of oak tables and chairs, would be debited and credited:

1. Issued oak materials into production for Job ABC SelectDr. Materials Inventory, Cr. Payroll PayableDr. Materials Inventory, Cr. Materials InventoryDr. Finished Goods Inventory, Cr. Materials InventoryDr. Materials Inventory, Cr. OverheadDr. Materials Inventory, Cr. Accounts PayableDr. Work in Process Inventory, Cr. Payroll PayableDr. Work in Process Inventory, Cr. Materials InventoryDr. Work in Process Inventory, Cr. OverheadDr. Work in Process Inventory, Cr. Accounts PayableDr. Overhead, Cr. Accounts PayableDr. Finished Goods Inventory, Cr. Work in Process InventoryItem 1 2. Recorded direct labor time for the first week in February for Job ABC SelectDr. Materials Inventory, Cr. Payroll PayableDr. Materials Inventory, Cr. Materials InventoryDr. Finished Goods Inventory, Cr. Materials InventoryDr. Materials Inventory, Cr. OverheadDr. Materials Inventory, Cr. Accounts PayableDr. Work in Process Inventory, Cr. Payroll PayableDr. Work in Process Inventory, Cr. Materials InventoryDr. Work in Process Inventory, Cr. OverheadDr. Work in Process Inventory, Cr. Accounts PayableDr. Overhead, Cr. Accounts PayableDr. Finished Goods Inventory, Cr. Work in Process InventoryItem 2 3. Purchased indirect materials from a vendor on account SelectDr. Materials Inventory, Cr. Payroll PayableDr. Materials Inventory, Cr. Materials InventoryDr. Finished Goods Inventory, Cr. Materials InventoryDr. Materials Inventory, Cr. OverheadDr. Materials Inventory, Cr. Accounts PayableDr. Work in Process Inventory, Cr. Payroll PayableDr. Work in Process Inventory, Cr. Materials InventoryDr. Work in Process Inventory, Cr. OverheadDr. Work in Process Inventory, Cr. Accounts PayableDr. Overhead, Cr. Accounts PayableDr. Finished Goods Inventory, Cr. Work in Process InventoryItem 3 4. Received a production-related electricity bill SelectDr. Materials Inventory, Cr. Payroll PayableDr. Materials Inventory, Cr. Materials InventoryDr. Finished Goods Inventory, Cr. Materials InventoryDr. Materials Inventory, Cr. OverheadDr. Materials Inventory, Cr. Accounts PayableDr. Work in Process Inventory, Cr. Payroll PayableDr. Work in Process Inventory, Cr. Materials InventoryDr. Work in Process Inventory, Cr. OverheadDr. Work in Process Inventory, Cr. Accounts PayableDr. Overhead, Cr. Accounts PayableDr. Finished Goods Inventory, Cr. Work in Process InventoryItem 4 5. Applied overhead to Job ABC SelectDr. Materials Inventory, Cr. Payroll PayableDr. Materials Inventory, Cr. Materials InventoryDr. Finished Goods Inventory, Cr. Materials InventoryDr. Materials Inventory, Cr. OverheadDr. Materials Inventory, Cr. Accounts PayableDr. Work in Process Inventory, Cr. Payroll PayableDr. Work in Process Inventory, Cr. Materials InventoryDr. Work in Process Inventory, Cr. OverheadDr. Work in Process Inventory, Cr. Accounts PayableDr. Overhead, Cr. Accounts PayableDr. Finished Goods Inventory, Cr. Work in Process InventoryItem 5 6. Completed but did not yet sell Job ABC SelectDr. Materials Inventory, Cr. Payroll PayableDr. Materials Inventory, Cr. Materials InventoryDr. Finished Goods Inventory, Cr. Materials InventoryDr. Materials Inventory, Cr. OverheadDr. Materials Inventory, Cr. Accounts PayableDr. Work in Process Inventory, Cr. Payroll PayableDr. Work in Process Inventory, Cr. Materials InventoryDr. Work in Process Inventory, Cr. OverheadDr. Work in Process Inventory, Cr. Accounts PayableDr. Overhead, Cr. Accounts PayableDr. Finished Goods Inventory, Cr. Work in Process Inventory

Item 6

Explanation / Answer

1. Issued oak materials into production for job ABC
Dr. Work in process inventory, Cr. Materials inventory
2. Recorded direct labor time for the first week in February for job ABC
Dr. Work in process inventory, Cr. Payroll Payable
3. Purchased indirect materials from a vendor on account
Dr. Overhead, Cr. Accounts payable
4. Received a production-related electricity bill
Dr. Overhead, Cr. Accounts Payable
5. Applied overhead to job ABC
Dr. Work in process inventory, Cr. Overhead
6. Completed but did not sell job ABC
Dr. Finished Goods inventory, Cr. Work in process inventory

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