Question

Question 18 Crawford Corporation incurred the following transactions. 1. 2. 3. 4. 5. 6. 7. 8. 9. Purchased raw materials on account $53,000. Raw Materials of $41,800 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $8,700 was classified as indirect materials. Factory labor costs incurred were $60,500, of which $50,600 pertained to factory wages payable and $9,900 pertained to employer payroll taxes payable. Time tickets indicated that $54,800 was direct labor and $5,700 was indirect labor. Manufacturing overhead costs incurred on account were $84,800. Depreciation on the company's office building was $9,000. Manufacturing overhead was applied at the rate of 160% of direct labor cost. Goods costing $94,200 were completed and transferred to finished goods. Finished goods costing $78,200 to manufacture were sold on account for $109,000.

Answer 1

Si No. Credit Account Titles and Explanation Raw Material Inventory Accounts Payable (Being raw materials purchased on account recorded) S Debit 53,000 $ 53,000 2 33.100 8.700 S Work in Process Inventory Manufacturing Overhead Raw materials Inventory (Being raw materials requisitioned to factory recorded) $ 41,800 3 $ 60,500 Factory Payroll Wages Payable Payroll taxes payable (Being factory Labor cost recorded) $ 50,600 $ 9,900 $ S 54,800 5,700 Work in Process Inventory Manufacturing Overhead Factory Payroll Being labor charegs recorded) $ 60.500 5 IS 84.800 Manufacturing Overhead Account Payable (Being manufacturing costs recorded) S 84.800

6 S 9,000 Depreciation Expenses Accumulated Depreciation (Being depreciation expenses recorded) $ 9,000 87.680 Work in Process Inventory manufacturing overhead (Being manufacturing overhead cost applied recorded) S 87.680 8 S 94,200 Finished Goods Inventory Work in Process Inventory (Being goods completed transferred to finished goods recorded) $ 94,200 9 $ 109,000 Account Receivables Sales (Being goods sold recorded) $ 109,000 S 78.200 Cost of Goods Sold Finished goods Inventory Being goods sold at cost recorded) $ 78.200 Working Notes: Manufacturing Overhead = $54,800*160% = $87,680 7