Match the following activities to their effect on the general ledger accounts.

"Match the following business activities to their respective impacts on general ledger accounts, ensuring accuracy in identifying how each activity affects account balances and classifications."

Save

1 Answers

Anonymous

Feb 21, 2025

1. Allocate overhead costs to jobs: Credit Factory Overhead. 2. Pay factory utilities: Debit Factory Overhead. 3. Purchase indirect material: Debit Raw Materials Inventory. 4. Use indirect materials: Credit Raw Materials Inventory. 5. Direct labor used: Debit Work in Process Inventory. Explanation:1. When you allocate overhead costs to jobs: Credit factory overhead. Factory overhead can be defined as cost incurred in the manufacturing process of finished goods and cannot be linked directly to the goods. 2. When you pay factory utilities: Debit factory overhead. Factory overhead can be defined as cost incurred in the manufacturing process of finished goods and cannot be linked directly to the goods. 3. When you purchase indirect material: Debit raw materials inventory. The raw materials inventory comprises of the overall cost of all resources such as component parts that a business has in stock which haven't been used for production of finished goods or work in process. 4. When you use indirect materials: Credit raw materials inventory. Raw materials inventory comprises of the overall cost of all resources such as component parts that a business has in stock which haven't been used for production of finished goods or work in process. 5. For direct labor used: Debit work in process inventory.

Want to answer this question?

Join our community to share your knowledge!

Anonymous

Match the following activities to their effect on the general ledger accounts.

1 Answers

AI-Powered Insights

Want to answer this question?

Categories

Tags

Related Questions