1820 GRADED Time Rema 6 of 1 1 5 complete al entries for Br

18-20) GRADED Time Rema 6 of 1 1 (5 complete) ? al entries for Brown Company: the tra redits.i More Info s on aq 6. Purchased materials on account, $7,000. 7. Used $5,000 in direct materials and $200 in indirect materials in production. 8. Incurred S 12,000 in labor costs, of which 70% was direct labor Print Done enter any number in the input fields and then continue to the next question. a/

Solution

Jounal entries Date Account\'s tittle Debit $ Credit $ 6 Material inventory                 7,000 Accounts Payable                     7,000 ( To be record purchase of material on account for $ 7,000 ) 7 Work in process - ( Direct material )                 5,000 Work in process - ( indirect material )                    200 Material inventory                     5,200 ( To be record issue of direct and indirect materials for production) 8 Direct labor cost ( $ 12,000 x 70% )                 8,400 Indirect labor cost                 3,600 Cash                   12,000 ( Direct and indirect labor costs are incurred ) Work in process               12,000 Direct labor cost                     8,400 Indirect labor cost                     3,600 ( Labor costs are charged to production )