Question

Exercise 15-07 Crawford Corporation incurred the following transactions. 1. Purchased raw materials on account $46,600. 2. Raw Materials of $40,800 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $7,000 was classified as indirect materials. 3. Factory labor costs incurred were $60,300, of which $50,100 pertained to factory wages payable and $10,200 pertained to employer payroll taxes payable. 4. Time tickets indicated that $55,700 was direct labor and $4,600 was indirect labor. 5. Manufacturing overhead costs incurred on account were $83,700. 6. Depreciation on the company's office building was $8,500. Manufacturing overhead was applied at the rate of 160% of direct labor cost. 8. Goods costing $89,900 were completed and transferred to finished goods. 9. Finished goods costing $80,900 to manufacture were sold on account for $104,200. Journalize the transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Answer 1

		Debit	Credit
1	Raw Materials Inventory	46600
	Accounts Payable		46600
2	Work in Process Inventory	33800
	Manufacturing Overhead	7000
	Raw Materials Inventory		40800
3	Factory Labor	60300
	Factory Wages Payable		50100
	Employer payroll taxes payable		10200
4	Work in Process Inventory	55700
	Manufacturing Overhead	4600
	Factory Labor		60300
5	Manufacturing Overhead	83700
	Accounts Payable		83700
6	Depreciation expense	8500
	Accumulated depreciation-Buidling		8500
7	Work in Process Inventory	89120		=55700*160%
	Manufacturing Overhead		89120
8	Finished goods inventory	89900
	Work in Process Inventory		89900
9	Accounts Receivable	104200
	Sales revenue		104200
	Cost of goods sold	80900
	Finished goods inventory		80900