Question

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 classified as indirect materials. 3. 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. 4. Time tickets indicated that $54,000 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 office 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. Journalize the transactions.

Answer 1

Journal entries:
S.no.	Accounts title and explanations					Debit $	Credit $
1	Raw material Inventory Account Dr.					46300
	Accounts payable account						46300
2	Work in process inventory Account Dr.					29200
	Manufacturing Overheads account Dr.					6800
	Raw material Inventory account						36000
3	factory Wages account Dr.					59900
	Factory wages payable Account						51000
	Payroll Tax payable Account						8900
4	Work in process inventory Account Dr.					54000
	Manufacturing Overheads account Dr.					5900
	Factory wages account						59900
5	Manufacturing overheads account Dr.					80500
	Accounts payable account						80500
6	Admin Overheads account Dr.					8100
	Accumulated depreciation-Office building						8100
7	Work in process inventory Account Dr.					81000
	Manufacturing Overheads account				(54000*150%)		81000
8	Finished Goods inventory Account Dr.					88000
	Work in process invetory Account						88000
9	Accounts receivable Dr.					103000
	Sales revenue						103000
	Cost of goods sold Account Dr.					75000
	Inventory account						75000