June 30 Work-in-Process Inventory. Also, 150 direct labor-hours had been paid at $6.00 per hour for the jobs in process on June 30.
The Accounts Payable account is only for direct material purchases. The clerk remembers clearly that the balance in the Accounts Payable on June 30 was $20,000. An analysis of canceled checks indicated payments of $70,000 were made to suppliers during June.