Question

Exercise 15-7

Crawford Corporation incurred the following transactions.

1.		Purchased raw materials on account $53,600.
2.		Raw Materials of $44,800 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $9,600 was classified as indirect materials.
3.		Factory labor costs incurred were $66,300, of which $51,500 pertained to factory wages payable and $14,800 pertained to employer payroll taxes payable.
4.		Time tickets indicated that $55,200 was direct labor and $11,100 was indirect labor.
5.		Manufacturing overhead costs incurred on account were $85,200.
6.		Depreciation on the company’s office building was $8,400.
7.		Manufacturing overhead was applied at the rate of 150% of direct labor cost.
8.		Goods costing $98,400 were completed and transferred to finished goods.
9.		Finished goods costing $82,700 to manufacture were sold on account for $108,400.

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

Answer 1

No	Account titles & Explanations					debit	Credit
1)	Raw materials inventory					53,600
	accounts payable						53,600
2)	work in process inventory					35,200
	Factory overhead					9,600
	Raw materials inventory						44,800
3)	Factory wages					66,300
	factory wages payable						51,500
	factory payroll taxes payable						14,800
4)	work in process inventory					55,200
	Factory overhead					11,100
	Factory wages						66,300
5)	Factory overhead					85,200
	Accounts payable						85,200
6)	Depreciation expense					8,400
	Accumulated depreciation						8,400
7)	work in process inventory					82800
	Factory overhead (54900*160%)						82,800
8)	finished goods inventory					98,400
	Work in process inventory						98,400
9)	Accounts receivable					108,400
	Sales						108,400
	cost of goods sold					82,700
	Finished goods						82,700