ACC 560 Brief Exercise 2-2 During January, its first month of operations, Dieker Company accumulated the following manufacturing costs: raw materials $5,300 on account, factory labor $7,400 of which $5,600 relates to factory wages payable and $1,800 relates to payroll taxes payable, and factory utilities payable $3,100. Prepare separate journal entries for each type of manufacturing cost. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Dieker Company

Journal Entries:

Debit Raw Materials Inventory $5,300

Credit Accounts Payable $5,300

To record the purchase of raw materials on account.

Debit Factory Labor $7,400

Credit Wages payable $5,600

Credit Payroll taxes payable $1,800

To record the cost of factory labor.

Debit Factory Utilities Expenses $3,100

Credit Factory Utilities Payable $3,100

To record the factory utilities expenses for the period.

Explanation:

a) Data and Calculations:

Raw materials on account = $5,300

Factory labor:

Factory wages payable = $5,600

Payroll taxes payable =       1,800

Total factory labor costs  $7,400

Factory utilities payable = $3,100

b) The journal entries made for each type of manufacturing cost help to record the transactions according to the double-entry system of accounting.  They show the accounts that must be debited and the ones that must be credited.

hopefull this will you!

the business rule that governs the relationship is one-to-many as there are multiple customers for each agent.

in 2001, dell computer became the world’s largest personal computer vendor, continuing to

gain market share and post profits in an industry struggling with slumping sales and billions of

dollars in losses. dell sells 90% of its pcs directly to the final customer, largely bypassing the

reseller channel that accounts for most of the world’s pc sales. this direct customer relationship

is the key to dell’s business model, and provides distinct advantages over the indirect sales

model. dell’s direct relationship with the customer allows it to tailor its offerings to customer

needs, offer add-on products and services, and use the internet to offer a variety of customer

services. in addition, dell’s pcs are built to customers’ specifications upon receipt of an order,

giving dell additional advantages over indirect pc vendors who must try to forecast demand and

ship products based on those forecasts. dell’s direct sales and build-to-order model has achieved

superior performance in the pc industry in terms of inventory turnover, reduced overhead, cash

conversion, and return on investment (kraemer, et al., 2000).

explanation: