Question

Sheridan Corporation incurred the following transactions. 1. 2. 3. 4. Purchased raw materials on account $51,800. Raw Materials of $45,000 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $9,000 was classified as indirect materials. Factory labor costs incurred were $64,100, of which $51,200 pertained to factory wages payable and $12.900 pertained to employer payroll taxes payable. Time tickets indicated that $54,900 was direct labor and $9,200 was indirect labor. Manufacturing overhead costs incurred on account were $83,600. Depreciation on the company's office building was $8,700. Manufacturing overhead was applied at the rate of 160% of direct labor cost. Goods costing $97.400 were completed and transferred to finished goods. Finished goods costing $82,100 to manufacture were sold on account for $105,300. 5. 6. 7. 8. 9.

Answer 1

Journal Entries in the Boks of Sheridan Corporation

No	Account Titles and Explanation	Debit	Credit
1)	Raw Materials	51,800
	Accounts payable		51,800
	(To record purchase of Material on credit)
2)	Work in process	36,000
	Manufacturing Overhead	9,000
	Raw Materials		45,000
	(To record requisition of raw material)
3)	Factory Labor cost	64,100
	Factory wages payable		51,200
	Factory payroll taxes payable		12,900
	(To record wages and payroll taxes payable)
4)	Work in process inventory	54,900
	Manufacturing Overhead	9,200
	Factory Labor cost		64,100
	(To record direct and indirect labor)
5)	Manufacturing Overhead	83,600
	Accounts payable		83,600
	(To record Manufacturing Overhead on credit)
6)	Depreciation Expense	8,700
	Accumulated Depreciation		8,700
	(To record Depreciation Expense)
7)	Work in process inventory	87,840
	Manufacturing Overhead(54,900*160%)		87,840
	(To record application of manufacturing overhead)
8)	Finished Goods	97,400
	Work in Process		97,400
	(To record goods transferred to finished goods
9)	Accounts receivable	1,05,300
	Sales Revenue		1,05,300
	(To record the sales)
	Cost of goods sold	82,100
	Finished goods Inventory		82,100
	(To record cost of goods sold)