Corporation had the following transactions during its first

Corporation had the following transactions during its first month of operations Raw Materials of $30,000 were requisitioned to the factory. An analysis of the Factory labor costs incurred were $150,000 of which $120,000 pertained to factory wages payable and s30,000 pertained to employer payroll taxes payable Time tickets indicated that $126.000 was direct labor and $24,000 was indirect labür costs incurred on acobunit were $168,000. overhead was applied the rate of 150% of drect labor wst. goods costing $100,000 to manufacture were sold on account for s:30.000.

Solution

7**)Cost of units completed = 25000+126000+189000=340000

Finished goods inventory = 340000-115000= 225000

Date	Account title	Debit	credit
1	Raw material inventory	85000
	Accounts payable		85000
2	Work in process	25000
	Manufacturing overhead	5000
	Raw material inventory		30000
3	Factory labor wage expense	150000
	Factory wages payable		120000
	payroll tax payable		30000
4	work in process	126000
	manufacturing overhead	24000
	Factory labor		150000
5	manufacturing overhead	168000
	Accounts payable		168000
6	work in process	189000
	manufacturing overhead [126000*150%]		189000
7	finished goods inventory	225000
	work in process		225000
	[being units completed transfered**]
8	Accounts receivable	130000
	sales revenue		130000
	cost of goods sold	100000
	finished goods inventory		100000