Question

Crawford Corporation incurred the following transactions. 1. Purchased raw materials on account $54,500. 2. 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. 3. Factory labor costs incurred were $62,500, of which $50,500 pertained to factory wages payable and $12,000 pertained to employer payroll taxes payable. 4. Time tickets indicated that $54,700 was direct labor and $7,800 was indirect labor. 5. Manufacturing overhead costs incurred on account were $84,900. 6. Depreciation on the company’s office building was $8,800. 7. Manufacturing overhead was applied at the rate of 150% of direct labor cost. 8. Goods costing $91,400 were completed and transferred to finished goods. 9. Finished goods costing $75,300 to manufacture were sold on account for $109,700.

Answer 1

1	Raw Materials Inventory	54500
	Accounts Payable		54500
2	Work in Process Inventory	30500
	Manufacturing Overhead	8000
	Raw Materials Inventory		38500
3	Factory Labor	62500
	Factory Wages Payable		50500
	Employer payroll taxes payable		12000
4	Work in Process Inventory	54700
	Manufacturing Overhead	7800
	Factory Labor		62500
5	Manufacturing Overhead	84900
	Accounts Payable		84900
6	Depreciation expense	8800
	Accumulated depreciation-Buidling		8800
7	Work in Process Inventory	82050		=54700*150%
	Manufacturing Overhead		82050
8	Finished goods inventory	91400
	Work in Process Inventory		91400
9	Accounts Receivable	109700
	Sales revenue		109700
	Cost of goods sold	75300
	Finished goods inventory		75300