Question

Crawford Corporation incurred the following transactions:

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

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

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

Answer 1

		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