Question

Exercise 15-7 Crawford Corporation incurred the following transactions. 1. Purchased raw materials on account $53,000. 2. Raw Materials of $45,200 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $9,400 was classified as indirect materials. 3. Factory labor costs incurred were $65,400, of which $50,200 pertained to factory wages payable and $15,200 pertained to employer payroll taxes payable. 4. Time tickets indicated that $55,000 was direct labor and $10,400 was indirect labor. 5. Manufacturing overhead costs incurred on account were $81,700. 6. Depreciation on the company's office building was $8,100. 7. Manufacturing overhead was applied at the rate of 160% of direct labor cost. 8. Goods costing $89,400 were completed and transferred to finished goods. 9. Finished goods costing $76,000 to manufacture were sold on account for $105,100. Journalize the transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Answer 1

Credit Debit $53,000 $ 53,000 $ 35,800 & 9, 4oo $ 45,200 $65,400 $ So, 200 $ 15,200 Transaction General Journal 1. Raw material Inventory Account Payable Work in Process Manufacturing overhead Raw material inventory 3. factory payroll Wages Payable Payroll taxes payable 4. Work in process Manufacturing overhead factory payroll 5. Manufacturing Overhead - Accounts payable Depreciation Expense Accumulated deprecation - Buildings work in process Manufacturing overhead applied 8. finished Goods work in process $ 55,000 $ 10,400 $ 65,400 & 01,700 $ 81,700 $ 8,100 $ 8,100 $ 88,000 $ 88,000 $8.9, 400 $89,400 $ 105, loo 9. Account receivable Sales $105,100 I $ 76,000 To record the sales) Cost of Goods sold finished goods inventory (To recard the cost of the sale) $76,000

Calculation: Work in 2 Process = Raw material inventory - Manufacturing overhead $ 45,200 - $ 9,400 $ 35,800 = - 3. Payroll taxes payable = - = Factory Payroll - wages. Payroll $ 65,400 - $50,200 $ 15,200 7 Manufacturing overhead applied = $55,000 direct laborx 160% direct labor cost = $ 88,000