ECONOMICS

Detailed explanation-1: -The journal entry to record finished product units would include a debit to: Finished Goods Inventory. The journal entry to record incurred direct labor would include a credit to: Accrued Payroll.

Detailed explanation-2: -When an item is ready to be sold, it is transferred from finished goods inventory to sell as a product. You credit the finished goods inventory, and debit cost of goods sold.

Detailed explanation-3: -a debit to WIP inventory. This is correct. The WIP inventory account of the receiving department is debited when goods are transferred to it.

Detailed explanation-4: -The journal entry to record the allocation of factory overhead is: Debit Work in Process Inventory and credit Factory Overhead.

Detailed explanation-5: -Using a process costing system, the journal entry to record the requisition of direct materials to be used in production includes credit to Raw Materials Inventory. Explanation: Raw materials inventory is an asset for the company hence the raw materials inventory is credited as it decreases the raw materials inventory.