Question

Crawford Corporation incurred the following transactions. 1. Purchased raw materials on account $47,000. 2. Raw Materials of $44,200 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $7,300 was classified as indirect materials. 3. Factory labor costs incurred were $60,100, of which $51,000 pertained to factory wages payable and $9,100 pertained to employer payroll taxes payable. 4. Time tickets indicated that $54,400 was direct labor and $5,700 was indirect labor. 5. Manufacturing overhead costs incurred on account were $83,600. 6. Depreciation on the company's office building was $8,600. 7. Manufacturing overhead was applied at the rate of 160% of direct labor cost. 8. Goods costing $94,800 were completed and transferred to finished goods. 9. Finished goods costing $81,800 to manufacture were sold on account for $110,300. Journalize the transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Answer 1

Journal entries

S.no	Accounts title and explanation	Debit ($)	credit($)
1	Raw material inventory	47000
	Accounts payable		47000
2	work in process	36900
	Manufacturing overhead	7300
	Raw material inventory		44200
3	factory wages	60100
	Payroll tax payable		9100
	Wages payable		51000
4	work in process	54400
	Manufacturing overhead	5700
	Factory wages		60100
5	manufacturing overhead	83600
	Accounts payable		83600
6	manufacturing overhead	8600
	Accumulated depreciation		8600
7	work in process	87040
	Manufacturing overhead (note)		87040
8	finished goods inventory	94800
	Work in process		94800
9(a)	Accounts receivable	110300
	Sales revenue		110300
9(b)	cost of goods sold	81800

Finished goods

81800

NOTE

MANUFACTURING OVERHEAD= DIRECT LABOUR COST*160%

   = 54400*160%

   = 87040

   All the best

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