Question

Sheffield Corporation incurred the following transactions. 1. 2. 3. 4. Purchased raw materials on account $53,800. Raw Materials of $36,500 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $8,500 was classified as indirect materials. Factory labor costs incurred were $61,900. Time tickets indicated that $54,900 was direct labor and $7,000 was indirect labor. Manufacturing overhead costs incurred on account were $82,300. Manufacturing overhead was applied at the rate of 160% of direct labor cost. Goods costing $96,600 were completed and transferred to finished goods. Finished goods costing $79,400 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 $ 53800 Manufacturing Overhead $ $ $ $ 1. Purchased raw materials 2. Direct materials 2. Indirect materials 3. Incurred factory labor 4. Direct labor 4. Indirect labor 82300 5. Overhead costs incurred 6. Assigned overhea 7. Completed goods 8. Goods sold

Answer 1

Manufacturing Costs Raw Materials Inventory Factory Labor Manufacturing Overhead Work in Process Inventory Finished Goods Inventory Cost of goods Sold 1. Purchased raw materials $ 53,800 2. Direct materials $ 28,000 $ 28,000 2.. Indirect Materials $ 8,500 $ 8,500 3. Incured factory labor $ 61,900 4. Direct Labor $ 54,900 $ 54,900 4. Indirect labor $ 7,000 $ 7,000 5. Overhead costs incured $ 82,300 6. Assigned overhead $ 87,840 $ 87,840 7. Completed goods $ 96,600 $ 96,600 8. Goods Sold $ 79,400 $ 79,400 Assigned overhead = $54,900*160% = $87,840