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Cline Manufacturing Company uses a job order system and maintains perpetual inventory records.
The columns indicating the appropriate account(s) to be debited and credited for the transactions listed below.
Transactions Account(s)Debited Account(s)Credited
1. Raw materials were purchased on account.
2. Issued a check to Dixon Machine Shop for repair work on factory equipment.
3. Direct materials were requisitioned for Job 280.
4. Factory labor was paid as incurred.
5. Recognized direct labor and indirect labor used.
6. The production department requisitioned indirect materials for use in the factory.
7. Overhead was applied to production based on a predetermined overhead rate of $8 per labor hour.
8. Goods that were completed were transferred to finished goods.
9. Goods costing $80,000 were sold for $105,000 on account.
10. Paid for raw materials purchased previously on account.
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Cline Manufacturing Company uses a job order system and maintains perpetual inventory records.
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