Question

Oriole Corporation incurred the following transactions. 1. 2. 3. 4. Purchased raw materials on account $54,500. Raw Materials of $38,500 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $8,000 was classified as indirect materials. Factory labor costs incurred were $62,500. Time tickets indicated that $54,700 was direct labor and $7,800 was indirect labor. Manufacturing overhead costs incurred on account were $84,900. Manufacturing overhead was applied at the rate of 150% of direct labor cost. Goods costing $91,400 were completed and transferred to finished goods. Finished goods costing $75,300 to manufacture were sold. 5. 6. 7. 8. Record the transactions. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Answer 1

	Manufacturing Costs
		Raw Mat. Inventory		Factory labor		Manuf. Overhead		WIP		FG		COGS
1. Purchased raw materials	$	54500	$		$		$		$		$
2. Direct materials	$	-30500	$		$		$	30500	$		$
2. Indirect materials	$	-8000	$		$	8000	$		$		$
3. Incurred factory labor	$		$	62500	$		$		$		$
4. Direct labor	$		$	-54700	$		$	54700	$		$
4. Indirect labor	$		$	-7800	$	7800	$		$		$
5. Overhead costs incurred	$		$		$	84900	$		$		$
6. Assigned overhead	$		$		$	54700*150%= -82050	$	82050	$		$
7. Completed goods	$		$		$		$	-91400	$	91400	$
8. Goods sold	$		$		$		$		$	-75300	$	75300