Question

Exercise 2A-7

Crane Corporation incurred the following transactions.

1.		Purchased raw materials on account $47,000.
2.		Raw Materials of $44,200 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $7,300 was classified as indirect materials.
3.		Factory labor costs incurred were $60,100.
4.		Time tickets indicated that $54,400 was direct labor and $5,700 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 $94,800 were completed and transferred to finished goods.
8.		Finished goods costing $81,800 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
			Raw Materials Inventory		Factory Labor		Manufacturing Overhead		Work in Process Inventory		Finished Goods Inventory		Cost of Goods Sold
1.	Purchased raw materials		$		$		$		$		$		$
2.	Direct materials
2.	Indirect materials
3.	Incurred factory labor
4.	Direct labor
4.	Indirect labor
5.	Overhead costs incurred
6.	Assigned overhead
7.	Completed goods
8.	Goods sold

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Answer 1

2A-7

Particulars	Raw Material Inventory	Factory Labour	Manufacturing Overhead	Work in Process	Finished Good Inventory	Cost of Good Sold
1.Purchased Raw Material	$47000
2. Direct Material	$(36900)			$36900
Indirect Material	$(7300)		$7300
3.Labor		$60100
4.Labour overhead cost		$(60100)	$5700	$54400
5.Incurred Assigned			$83600
6. Overhead completed.			$(87040)	$87040
7.Goods				($94800)	$94800
8.Goods Sold					$(81800)	$81800

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