Question

Exercise 15-7 Crawford Corporation incurred the following transactions. 1. Purchased raw materials on account $51,000. 2. Raw Materials of $42,300 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $8,800 was classified as indirect materials. 3. Factory labor costs incurred were $66,200, of which $50,600 pertained to factory wages payable and $15,600 pertained to employer payroll taxes payable. 4. Time tickets indicated that $55,000 was direct labor and $11,200 was indirect labor. 5. Manufacturing overhead costs incurred on account were $81,600. 6. Depreciation on the company's office building was $8,200. 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 $84,400 to manufacture were sold on account for $110,500.

Answer 1

No	Account titles & Explanations					debit	Credit
1)	Raw materials inventory					51,000
	accounts payable						51,000
2)	work in process inventory					33,500
	Factory overhead					8,800
	Raw materials inventory						42,300
3)	Factory wages					66,200
	factory wages payable						50,600
	factory payroll taxes payable						15,600
4)	work in process inventory					55,000
	Factory overhead					11,200
	Factory wages						66,200
5)	Factory overhead					81,600
	Accounts payable						81,600
6)	Depreciation expense					8,200
	Accumulated depreciation						8,200
7)	work in process inventory					88000
	Factory overhead (55000*160%)						88,000
8)	finished goods inventory					89,400
	Work in process inventory						89,400
9)	Accounts receivable					110,500
	Sales						110,500
	cost of goods sold					84,400
	Finished goods						84,400