Crawford Corporation incurred the following transactions 1 P

Crawford Corporation incurred the following transactions. 1. Purchased raw materials on account $55,600. 2. Raw Materials of $36,400 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 $65,100, of which $51,800 pertained to factory wages payable and $13,300 pertained to employer payrolil taxes payable. 4 Time tickets indicated that $55,700 was direct labor and $9,400 was indirect labor. 5. Manufacturing overhead costs incurred on account were $85,500. 6. Depreciation on the company\'s office building was $8,700. 7, Manufacturing overhead was applied at the rate of 160% of direct labor cost. 8. Goods costing $94,000 were completed and transferred to finished goods. 9. Finished goods costing $80,200 to manufacture were sold on account for $113,700. Journalize the transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually,) No. Account Titles and Explanation Debit Credit (2) 1

Solution

Journal Entries No. Account Titles and Explanation Debit Credit 1 Raw Material Inventory $55,600 Accounts Payable $55,600 2 Work in process $26,800 Manufacturing Overheads $9,600 Raw Material Inventory $36,400 3 Factory Wages $65,100 Wages Payable $51,800 Payroll Taxes Payable $13,300 4 Work in process $55,700 Manufacturing Overheads $9,400 Factory Wages $65,100 5 Manufacturing Overheads $85,500 Overheads Payable $85,500 6 Depreciation Expense $8,700 Accumulated depreciation - Office building $8,700 7 Work in process (160% of $55700) $89,120 Manufacturing Overheads $89,120 8 Finished Goods Inventory $94,000 Work in process $94,000 9-a Accounts Receivables $113,700 Sales $113,700 9-b Cost of goods sold $80,200 Finished Goods Inventory $80,200