Question

Crawford Corporation incurred the following transactions. 1. 2. 3. 4. 5. Purchased raw materials on account $55,000. Raw Materials of $36,400 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $8,100 was classified as indirect materials. Factory labor costs incurred were $61,000, of which $51,600 pertained to factory wages payable and $9.400 pertained to employer payroll taxes payable. Time tickets indicated that $54,300 was direct labor and $6,700 was indirect labor. Manufacturing overhead costs incurred on account were $82,100. Depreciation on the company's office building was $8,400. Manufacturing overhead was applied at the rate of 160% of direct labor cost. Goods costing $90,200 were completed and transferred to finished goods. Finished goods costing $85,000 to manufacture were sold on account for $108,200. 7. ο ο ο

Answer 1

Solution

No.	Account Titles and explanation	Dr	Cr
1	Purchases/ Raw material inventory	$55,000
	Account payable		$55,000
2	Work in progress	$28,300
	Manufacturing overhead	$8,100
	Raw material inventory		$36,400
3	Factory labour	$61,000
	Factory wages payable		$51,600
	Employer payroll taxes		$9,400
4	Manufacuring overhead	$54,300
	Work in progress inventory	$6,700
	Factory labour		&61000
5	Manufacturing overhead	$82,100
	Account payable		$82,100
6	Depreciation
	Accoumulated depriciation	$8,400
			$8,400

7	Work in progress	$97,600
	manufacturing overhead		$97,600
8	Finished goods	90200
	Workin in progress		90200
9	Account receivable	108200
	Sales		108200
	COGS
	Finished inventory	85000
			85000