Manufacturing Reports the Following Data for the Month Journalize the Entries Relating to Materials and Labor

question 180

Essay

Manufacturing reports the following data for the month:
$\begin{array}{llcc} \text { Purchases of raw materials, on account } &\$55,250 \\ \text { Materials requisitions: } &\\ \text { Direct materials} &49,750\\ \text { Indirect materials } &3,700\\ \text { Labor incurred (not yet paid): } &\\ \text { Direct labor } &51,000\\ \text {Indirect labor } &2,500\\\end{array}$
Journalize the entries relating to materials and labor.Omit explanations.

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Definitions:

Absolute Advantage

The ability of an entity to produce more of a good or service than competitors using the same amount of resources.

Opportunity Cost

The cost of foregone alternatives when a choice is made, represented by the benefits that could have been received by choosing the next best alternative.

Soybeans

Refers to a type of legume native to East Asia, widely grown for its edible bean which has numerous uses.

Comparative Advantage

The ability of a country or individual to produce a particular good or service at a lower opportunity cost than others.