Question

Sheridan Corporation incurred the following transactions. 1. Purchased raw materials on account $51,800. 2 Raw Materials of $45,000 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $9,000 was classified as indirect materials. 3. Factory labor costs incurred were $64,100. 4. Time tickets indicated that $54,900 was direct labor and $9,200 was indirect labor. 5. Manufacturing overhead costs incurred on account were $83,600. 6. Manufacturing overhead was applied at the rate of 160% of direct labor cost. 7. Goods costing $97,400 were completed and transferred to finished goods. 8. Finished goods costing $82,100 to manufacture were sold. Record the transactions. (Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) Manufacturing Costs Work in Prc Inventor Raw Materials Inventory Factory Labor Manufacturing Overhead 1. Purchased raw materials $ 2. Direct materials

Answer 1

		Raw material Inventory	Factory Labor	Manufacturing Overhead	Work in process Inventory		Finished goods
1	Purchased raw material	51800
2	Direct materials	-45000		9000	36000
3	Factory labor cost incurred		64100
4	Factor labor		-64100	9200	54900
5	Manufacturing overhead			83600
6	Manufacturing overhead applied			-87840	87840	(54900*160%)
7	Goods transferred to finished goods				-97400		97400
8	Finished goods						-82100