For each of the five transactions described below, indicate which account should be debited and which account should be credited: Cost of Goods Sold Direct Labor
Finished Goods Manufacturing Overhead
Raw Materials Salaries and Wages Pavable
Transaction Debit Credit
1. Direct materials are issued into production for a specific job
2. Salary of the Production Supervisor is payable
3. Lubricating oil, waste cotton, and solder are used in the factory
4. The wages of direct laborers who worked on a particular job are payable
5. Manufacturing overhead is applied to jobs using a predetermined overhead rate

7. problems and applications q7 congress and the president decide that the united states should reduce air pollution by reducing its use of gasoline. they impose a $0.50 tax on each gallon of gasoline sold. suppose they decided to impose the tax on consumers. in the following graph, shows the effect of a $0.50 tax on each gallon of gasoline sold imposed on consumers by shifting the demand or supply curve. demand supply 0 1 2 3 4 5 6 3.0 2.5 2.0 1.5 1.0 0.5 0 price of gasoline (dollars per gallon) quantity of gasoline (thousands of gallons) demand s 1 s 2 true or false: the price producers receive will be higher if the tax were imposed on consumers. true false if the demand for gasoline were more elastic, this tax would be effective in reducing the quantity of gasoline consumed. true or false: consumers of gasoline are by this tax. true false workers in the oil industry are by this tax.