Question

Crawford Corporation incurred the following transactions. 1. 2. 3. 4. Purchased raw materials on account $50,600. Raw Materials of $42,300 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $9,500 was classified as indirect materials. Factory labor costs incurred were $65,500, of which $50,900 pertained to factory wages payable and $14,600 pertained to employer payroll taxes payable. Time tickets indicated that $54,400 was direct labor and $11,100 was indirect labor. Manufacturing overhead costs incurred on account were $83,100. Depreciation on the company's office building was $8,300. Manufacturing overhead was applied at the rate of 160% of direct labor cost. Goods costing $92,700 were completed and transferred to finished goods. Finished goods costing $81,800 to manufacture were sold on account for $112,400. 5. 6. 7. 8. 9. Journalize the transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit (1) (2) (3) (4) (5) (6) (7) (8) (9) (To record the sale) (To record the cost of the sale)

Answer 1

Journal entry

No	General Journal	Debit	Credit
1	Raw material	50600
	Account payable		50600
2	Work in process	32800
	Manufacturing overhead	9500
	Raw material		42300
3	Factory labor	65500
	Factory wages payable		50900
	payroll taxes payable		14600
4	Work in process	54400
	Manufacturing overhead	11100
	Factory labor		65500
5	Manufacturing overhead	83100
	Account payable		83100
6	Manufacturing overhead	8300
	Accumulated depreciation-Building		8300
7	Work in process (54400*1.6)	87040
	Manufacturing overhead		87040
8	Finished goods	92700
	Work in process		92700
9	Account receivable	112400
	Sales revenue		112800
	(To record sales)
	Cost of goods sold	81800
	Finished goods		81800
	(To record the cost of the sale)