Paulson Manufacturing Company uses the perpetual inventory system to account for its manufacturing inventories. The following are Paulson's transactions during July 2016 July 5 Received material costing $1,000 from a supplier. The material was purchased on account.
9 Requisitioned $3,000 of material for use in the factory, consisting of $2,500 of direct material and $500 of indirect material.
11 Recorded the factory payroll: $6,750 of direct labor and $750 of indirect labor.
17 Incurred various overhead costs totaling $7,000. (Credit Accounts Payable.)
20 Applied $10,000 of manufacturing overhead to the products being manufactured.
23 Completed product costing $8,000 and moved it to the warehouse.
26 Sold goods with a product cost of $1,500 on account for $2,500.

Required:
Record the transactions listed above in general journal form

Paulson Manufacturing Company

General Journal

Date     Accounts Titles                Debit         Credit

July 5   Raw materials inventory $1,000

            Accounts payable                             $1,000

To record the purchase of materials on account.

July 9  Work-in-Process              $2,500

           Manufacturing overhead     500

           Raw materials inventory                  $3,000

To record the requisitioning of materials.

July 11  Work-in-Process            $6,750

           Manufacturing overhead    750

           Factory Wages                                $7,500

To record the factory payroll.

July 17 Manufacturing overhead $7,000

           Accounts payable                          $7,000

To record various overhead costs incurred on account.

July 20 Work-in-Process           $10,000

            Manufacturing overhead           $10,000

To record the application of overhead to products.

July 23 Finished Goods             $8,000

            Work-in-Process                          $8,000

To record the completion of production.

July 26 Cost of goods sold       $1,500

            Finished Goods                           $1,500

To record the cost of goods sold.

July 26 Accounts Receivable  $2,500

            Sales Revenue                           $2,500

To record the sale of goods on account

Explanation:

The general journal is a multi-purpose journal.  It is used to record business transactions as they occur daily.  It is the first record kept of business transactions.  It shows the accounts to be debited and the others to be credited.

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