Question

Crawford Corporation incurred the following transactions. 1. Purchased raw materials on account $52,800. Raw Materials of $45,500 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $9,600 was classified as indirect materials. 3. Factory labor costs incurred were $68,000, of which $51,500 pertained to factory wages payable and $16,500 pertained to employer payroll taxes payable. 4. Time tickets indicated that $55,100 was direct labor and $12,900 was indirect labor. 5. Manufacturing overhead costs incurred on account were $84,700. 6. Depreciation on the company's office building was $8,600. 7. Manufacturing overhead was applied at the rate of 150% of direct labor cost. 8. Goods costing $95,500 were completed and transferred to finished goods. 9. Finished goods costing $81,400 to manufacture were sold on account for $105,600. Journalize the transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Credit No. Account Titles and Explanation (1)

Answer 1

No. Account Titles and Explanation Debit Credit 52,800 Raw materials inventory Accounts payable (to record purchase of materials) 52,800 35,900 9,600 Work in Process Inventory Manufacturing Overhead Raw materials inventory (to record use of materials) 45,500 68,000 Factory labor Factory wages payable Employer payroll taxes payable (to record the factory labor) 51,500 16,500 55,100 12,900 Work in process inventory Manufacturing Overhead Factory labor (to record use of factory labor) 68,000 84,700 Manufacuring Overhead Accounts payable (to record manufacturing overhead) 84,700 8,600 Depreciation expense Accumulated Depreciation (to record the depreciation expense on Building) 8,600

82,650 Work in process inventory (55,100 x 150%) Manufacturing overhead (to record manufacturing overhead applied) 82,650 95,500 Finished goods inventory Work in process inventory (to record transfer of completed goods) 95,500 105,600 Accounts receivable Sales revenue (to record sales) 105,600 81,400 Cost of goods sold Finished goods inventory (to record cost of goods sold) 81,400