Question

Crawford Corporation incurred the following transactions.

1.		Purchased raw materials on account $49,100.
2.		Raw Materials of $44,200 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $9,900 was classified as indirect materials.
3.		Factory labor costs incurred were $61,900, of which $51,400 pertained to factory wages payable and $10,500 pertained to employer payroll taxes payable.
4.		Time tickets indicated that $55,300 was direct labor and $6,600 was indirect labor.
5.		Manufacturing overhead costs incurred on account were $81,900.
6.		Depreciation on the company’s office building was $8,500.
7.		Manufacturing overhead was applied at the rate of 160% of direct labor cost.
8.		Goods costing $93,900 were completed and transferred to finished goods.
9.		Finished goods costing $76,400 to manufacture were sold on account for $105,700.

Journalize the transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Answer 1

S.no.	Accounts title and explanations					Debit $	Credit $
1	Raw material inventory Account Dr.					49100
	Accounts payable						49100
2	Work in process inventory Account Dr.					34300
	Manufacturing Overheads account Dr.					9900
	Raw material inventory						44200
3	Factory Wages account Dr.					61900
	Payroll Tax payable Account						10500
	Wages payable						51400
4	Work in process inventory Account Dr.					55300
	Manufacturing Overheads account Dr.					6600
	Factory Wages						61900
5	Manufacturing OH Account Dr.					81900
	Accounts payable						81900
6	Manufacturing OH Account Dr.					8500
	Accumulated depreciation						8500
7	Work in process inventory Account Ddr.					88480
	Manufacturing overheads						88480
8	Finished Goods inventory Account Dr.					93900
	Work in process inventory						93900
9	Accounts receivable Account Dr.					105700
	Sales revenue						105700
	Cost of Goods sold Account Dr.					76400
	Finished Goods inventory						76400