Matching Question Match the following activities to their effect on the general ledger accounts. Allocate indirect labor Allocate indirect labor drop zone empty. Pay factory property tax Pay factory property tax drop zone empty. Purchase materials Purchase materials drop zone empty. Use direct materials Use direct materials drop zone empty. Complete job Complete job drop zone empty. Sold job Sold job drop zone empty. Credit Finished Goods Inventory Debit Raw Materials Inventory Debit Factory Overhead Credit Factory Wages Payable Debit Finished Goods Inventory Credit Raw Materials Inventory

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Answer:

Activities                         General Ledger accounts

Allocate indirect labor         Credit Factory wages payable

Pay factory property tax      Debit Factory Overheads

Purchase materials              Debit Raw material inventory

Use direct materials            Credit Raw material inventory

Complete job                       Debit Raw material inventory

Deliver job                            Credit Raw material inventory