Question

Torre Corporation incurred the following transactions. 1. Purchased raw materials on account $46,300. 2. Raw materials of $36,000 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $6,800 was classifi ed as indirect materials. 3. Factory labor costs incurred were $55,900, of which $51,000 pertained to factory wages payable and $4,900 pertained to employer payroll taxes payable. 4. Time tickets indicated that $50,000 was direct labor and $5,900 was indirect labor. 5. Manufacturing overhead costs incurred on account were $80,500. 6. Depreciation on the company’s offi ce building was $8,100. 7. Manufacturing overhead was applied at the rate of 150% of direct labor cost. 8. Goods costing $88,000 were completed and transferred to finished goods. 9. Finished goods costing $75,000 to manufacture were sold on account for $103,000. Instructions Journalize the transactions. (Omit explanations.)

Answer 1

  TORRE CORPORATION

Journal Entries

Date/ S.No.	Particulars	Debit (in $)	Credit (in $)
1.	Raw Material A/c Dr.	46,300
	To Accounts Payable		46,300
2.	Work In Progress A/c Dr.	29,200
	Manufacturing Overhead A/c Dr.	6,800
	To Raw Materials Inventory A/c		36,000
3.	Factory Payroll A/c Dr.	55,900
	To Wages Payble A/c		51,000
	To Payroll Taxes Payble		4,900
4.	Direct Labour A/c Dr.	50,000
	Indirect Labour A/c Dr.	5,900
	To Factory Labour Cost		55,900
5.	Manufacturing Overhead A/c Dr.	80,500
	To Accounts Payble A/c		80,500
6.	Depreciation on Building A/c Dr.	8,100
	To Accumumlated Depreciaiton on Building A/c		8,100
7.	Work in Progess A/c Dr.	75,000
	To Manufacturing Overhead Applied		75,000
8.	Finished Goods A/c Dr.	88,000
	To Work in Progress A/c		88,000
9.	Accounts Receivable A/c Dr.	1,03,000
	To Sales		1,03,000
10.	Cost of Goods Sold A/c Dr.	75,000
	To Finished Goods		75,000

Note: Ommited explanations or narrations as per question's instructions!

NOTE: For any query please free to ask in the comment box!