Question

Crawford Corporation incurred the following transactions. 1. Purchased raw materials on account $49,400. 2. Raw Materials of $41,300 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 $65,200, of which $51,300 pertained to factory wages payable and $13,900 pertained to employer payroll taxes payable. 4. Time tickets indicated that $54,600 was direct labor and $10,600 was indirect labor. 5. Manufacturing overhead costs incurred on account were $84,900. 6. Depreciation on the company’s office building was $8,300. 7. Manufacturing overhead was applied at the rate of 150% of direct labor cost. 8. Goods costing $96,300 were completed and transferred to finished goods. 9. Finished goods costing $80,700 to manufacture were sold on account for $111,600. Journalize the transactions

Answer 1

Journal entries
	Particulars				Debit	Credit
1	Raw material inventory				$     49,400.00
	account payable					$     49,400.00
	(to record purchase of raw material)
2	WIP inventory				$     33,300.00
	Manufacturing overhead				$       8,000.00
	Raw material inventory					$     41,300.00
	(to record material t/f to WIP & Manufacturing OH)
3	Factory labour				$     65,200.00
	factory wages payable					$     51,300.00
	payroll taxes payable					$     13,900.00
	(to record wages payable & payroll taxes recorded)
4	WIP inventory				$     54,600.00
	manufacturing OH				$     10,600.00
	factory labour					$     65,200.00
	(to record direct & indirect labour recorded)
5	manufacturing OH				$     84,900.00
	accounts payable					$     84,900.00
	(to record manufacturing oh cost incurred)
6	office building depreciation exp				$       8,300.00
	accumulated dep (office building)					$       8,300.00
	(to record dep exp of building)
7	WIP inventory				$     81,900.00
	manufacturing OH (54600*150%)					$     81,900.00
	(to record manufacturing oh cost applied)
8	Finished goods inventory				$     96,300.00
	WIP Inventory					$     96,300.00
	(to record COGS transferred to finished goods)
9	Account receivable				$ 1,11,600.00
	sales					$ 1,11,600.00
	(to record goods sold )
	Cost of goods sold				$     80,700.00
	finished goods inventory					$     80,700.00
	(to record finished goods sold at cost)