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Crawford Corporation incurred the following transactions: Purchased raw materials on account $46,300. Raw Materials of $36,000 were requisitioned...

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Accounting

Crawford Corporation incurred the followingtransactions:

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 $51,000pertained to factory wages payable and $8,900 pertained to employerpayroll taxes payable.

Time tickets indicated that $54,000 was direct labor and $5,900was 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 directlabor cost. Goods costing $88,000 were completed and transferred tofinished goods.

Finished goods costing $75,000 to manufacture were sold onaccount for $103,000.

Answer & Explanation Solved by verified expert
4.2 Ratings (541 Votes)

Debit Credit
1 Raw Materials Inventory 46300
        Accounts Payable 46300
2 Work in Process Inventory 29200
Manufacturing Overhead 6800
       Raw Materials Inventory 36000
3 Factory Labor 59900
     Factory Wages Payable 51000
     Employer payroll taxes payable 8900
4 Work in Process Inventory 54000
Manufacturing Overhead 5900
      Factory Labor 59900
5 Manufacturing Overhead 80500
        Accounts Payable 80500
6 Depreciation expense 8100
       Accumulated depreciation-Buidling 8100
7 Work in Process Inventory 81000 =54000*150%
      Manufacturing Overhead 81000
8 Finished goods inventory 88000
       Work in Process Inventory 88000
9 Accounts Receivable 103000
          Sales revenue 103000
Cost of goods sold 75000
      Finished goods inventory 75000

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