If Scot and Vidia earn an additional "$92,750" of taxable income, what is their marginal tax rate on this income? What is their marginal rate if, instead, they report an additional $92,750 in deductions?

raw materials       86,000 debit

    accounts payable     86,000 credit

--to record purchase of materials--

WIP          71,000 debit

overhead 13,000 debit

      raw materials      84,000 credit

--to record use of materials--

WIP         102,400 debit

overhead 25,600 debit

          cash                    128,000 credit

--to record wages payment--

overhead        191,000 debit

    accumulated depreciation-equipment 191,000 credit

--to record depreciaiton accumulated on equipment--

Explanation:

for materials and labor we do the distinction betwene direct and indirect. As one goes straight into WIP while the other is part of the acutal overehad.

indirect materials  84,000 - 71,000= 13,000

indirect labor  128,000 - 102,400 = 25,600

the depreciaiton which is a factory cost, weill go into factory overhead.