Question

Crawford Corporation incurred the following transactions. 1. Purchased raw materials on account $55,500. 2. Raw Materials of $43,700 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $7,600 was classified as indirect materials. 3. Factory labor costs incurred were $65,600, of which $50,000 pertained to factory wages payable and $15,600 pertained to employer payroll taxes payable. 4. Time tickets indicated that $55,400 was direct labor and $10,200 was indirect labor. 5. Manufacturing overhead costs incurred on account were $83,700. 6. Depreciation on the company's office building was $8,900. 7. Manufacturing overhead was applied at the rate of 150% of direct labor cost. 8. Goods costing $89,100 were completed and transferred to finished goods. 9. Finished goods costing $84,300 to manufacture were sold on account for $113,100. Journalize the transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit Raw Materials Inventory 55500 Accounts Payable 55500 (2) Work in Process Inventory 36100 Manufacturing Overhead 7600 Raw Materials Inventory 43700

Answer 1

		Debit	Credit
1	Raw Materials Inventory	55500
	Accounts Payable		55500
2	Work in Process Inventory	36100
	Manufacturing Overhead	7600
	Raw Materials Inventory		43700
3	Factory Labor	65600
	Factory Wages Payable		50000
	Employer payroll taxes payable		15600
4	Work in Process Inventory	55400
	Manufacturing Overhead	10200
	Factory Labor		65600
5	Manufacturing Overhead	83700
	Accounts Payable		83700
6	Depreciation expense	8900
	Accumulated depreciation-Buidling		8900
7	Work in Process Inventory	83100		=55400*150%
	Manufacturing Overhead		83100
8	Finished goods inventory	89100
	Work in Process Inventory		89100
9	Accounts Receivable	113100
	Sales revenue		113100
	Cost of goods sold	84300
	Finished goods inventory		84300