Question

Crawford Corporation incurred the following transactions. Purchased raw materials on account $46,300. Raw materials of $36,000 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $6,800 was classified as indirect materials. Factory labor costs incurred were $59,900, of which $51,000 pertained to factory wages payable and $8,900 pertained to employer payroll taxes payable. Time tickets indicated that $54,000 was direct labor and $5,900 was indirect labor. Manufacturing overhead costs incurred on account were $80,500. Depreciation on the company's office building was $8,100. Manufacturing overhead was applied at the rate of 150% of direct labor cost. Goods costing $88,000 were completed and transferred to finished goods. Finished goods costing $75,000 to manufacture were sold on account for $103,000.

Answer 1

Prepare Journal entries as follows A. Purchased raw materials on account $46,300 Credit Raw material S46,300 Accounts payable S46,300 To record purchases on credit) B. Raw materials of $36,000 were requisitioned to the factory Debit Credit S29,200 DateAccount title and explanation Work in proce Manufacturing overhead ss 6800 Raw material inventory 536,000 )()( To record requistion of raw material)

Factory labor costs incurred were S59,900, of which $51,000 pertained to factory wages payable and $8,900 pertained to employer payroll taxes payable Date Debit Credit Account title and explanation Factory payroll $59,900 S51,000 $8,900 Wages payable Payroll taxes payable To record wages and payroll taxes payable) Time tickets indicated that S54,000 was direct labor and $5,900 was indirect labor. Date Account title and explanation Work in Manufacturing overhead Debit Credit S54,000 $5,900 ess Factory payrol S59,900 To record direct and indirecıt labor)

Manufacturing overhead costs incurred on account were $80,500 Debit Credit Account title and explanation Manufad overhead S80,500 Accounts payable S80,500 To record manufacturing overhead on credit) Depreciation on the company's office building was $8,100 Date Account title and explanation Debit Credit Depreciation $8,100 Accumulated Depreciation $8,100 To record depreciation) Manufacturing overhead was applied at the rate of 1 50% of direct labor cost Credit Account title and explanation Work in process ($54,000x 1 5096) Debit $81,000 Manufacturing overhead $81,000 To record apllication of overhead)

Goods costing $88,000 were completed and transferred to finished goods Date Credit Account title and explanation Finished Goods Debit $88,000 Work in process $88,000 (To record goods trasffered to inished goods) Finished goods costing $75,000 to manufacture were sold on account for $103,000 Debit S103,000 Date Account title and explanation Credit Accounts receivable Sales $103,000 To record sale made on credit) Date Account title and explanation Cost of Goods sold Debit Credit $75,000 $75,000 Finished goods To record Cost of goods sold)