Question

Bonita Corporation incurred the following transactions. 1. 2. 3. 4. Purchased raw materials on account $55,000. Raw Materials of $36,400 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $8,100 was classified as indirect materials. Factory labor costs incurred were $61,000. Time tickets indicated that $54,300 was direct labor and $6,700 was indirect labor. Manufacturing overhead costs incurred on account were $82,100. Manufacturing overhead was applied at the rate of 160% of direct labor cost. Goods costing $90,200 were completed and transferred to finished goods. Finished goods costing $85,000 to manufacture were sold. 5. 6. 7. 8. Record the transactions. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e-g. (45).) Manufacturing Costs Factory Labor Raw Materials Inventory Manufacturing Overhe $ $ 1. Purchased raw materials 2. Direct materials 2. Indirect materials 3. Incurred factory labor 4. Direct labor 4. Indirect labor 5. Overhead costs incurred 6. Assigned overhead 7. Completed goods 8. Goods sold

Answer 1

		Raw materials Inventory($)	Factory Labor($)	Manufacturing Overheads($)	Work in process Inventory($)	Finished Goods Inventory($)	Cost of Goods Sold($)
1	Purchased raw materials	55,000
2	Direct materials	28,300
2	Indirect materials	8,100
3	Incurred factory labor		61,000
4	Direct labor		54,300
4	Indirect Labor		6,700
5	Overhead cost incurred			82,100
6	Assigned overhead			86,880
7	Completed goods					90,200
8	Goods sold						85,000