What to debit and credit

Record purchase of materials

Debit Raw Materials Inventory, Credit Accounts Payable (assuming paying with credit).

Record materials requisitions (raw materials used)

Debit Work in Process Inventory for total direct materials requisitioned and credit Raw Materials Inventory for same amount.

Entry to record direct labor costs

Debit Work in Process Inventory for full direct labor amount, Credit Factory Wages Payable (or cash) for same amount.

Entry to record applied overhead (apply estimated overhead to jobs)

Debit Work in Process Inventory for full Applied Overhead amount, Credit Factory Overhead for same amount.

Record actual indirect materials used

Debit Factory Overhead, Credit Raw Materials Inventory.

Entry to record indirect labor used

Debit Factory Overhead, Credit Factory Wages Payable

Entry to record other overhead costs

Debit Factory Overhead full total amount, Credit accounts related to the factory overhead for amounts such as Rent Payable, Prepaid Insurance, etc.

Entry to record the flow of costs from Work in Process Inventory to Finished Goods Inventory

Debit Finished Goods Inventory, Credit Work in Process Inventory

Entry to record the flow of costs from Finished goods inventory to Cost of Goods Sold

Debit Cost of Goods Sold, Credit Finished Goods Inventory

Entry to record sale when finished goods are sold

Debit Accounts Receivable (or cash), credit Sales

Entry to close Factory Overhead (underapplied)

Debit Cost of Goods Sold for amount actual overhead is more than applied overhead, Credit Factory Overhead for same amount.

Entry to close Factory Overhead (overapplied)

Debit Factory Overhead for amount actual overhead is under applied overhead, Credit Cost of Goods Sold for same amount.