Question

1. 2. Crane Corporation incurred the following transactions. Purchased raw materials on account $46,400. Raw Materials of $36,100 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $6,900 was classified as indirect materials. Factory labor costs incurred were $60,000. Time tickets indicated that $54,100 was direct labor and $5,900 was indirect labor. Manufacturing overhead costs incurred on account were $81,500. Manufacturing overhead was applied at the rate of 150% of direct labor cost. Goods costing $89.000 were completed and transferred to finished goods. 8. Finished goods costing $75.100 to manufacture were sold. 3. 4. 5. 6. 7.

Answer 1

1. Purchased raw materials 2. Direct materials 2.. Indirect Materials 3. Incured factory labor 4. Direct Labor 4. Indirect labor 5. Overhead costs incured 6. Assigned overhead 7. Completed goods 8. Goods Sold Manufacturing Costs Raw Materials Inventory Factory Labor Manufacturing Overhead Work in Process Inventory Finished Goods Inventory Cost of goods Sold S 46,400 $ 29,200 $ 29,200 $ 6,900 $ 6,900 $ 60,000 $ 54,100 S 54,100 $ 5,900 $ 5,900 S 81,500 $ 81,150 $ 81,150 $ 89,000 $ 89,000 $ 75,100 $ 75,100