Crawford Corporation incurred the following transactions. 1. 2. 3. 4. 5. 6. 7. 8
ID: 2337302 • Letter: C
Question
Crawford Corporation incurred the following transactions. 1. 2. 3. 4. 5. 6. 7. 8. 9. Purchased raw materials on account $54,500 Raw Materials of $38,500 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $8,000 was classified as indirect materials. Factory labor costs incurred were $62,500, of which $50,500 pertained to factory wages payable and $12,000 pertained to employer payroll taxes payable Time tickets indicated that $54,700 was direct labor and $7,800 was indirect labor Manufacturing overhead costs incurred on account were $84,900 Depreciation on the company's office building was $8,800 Manufacturing overhead was applied at the rate of 150% of direct labor cost. Goods costing $91,400 were completed and transferred to finished goods Finished goods costing $75,300 to manufacture were sold on account for $109,700 Journalize the transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit CreditExplanation / Answer
Crawford Corporation
Journal Entries
No.
Account Titles and Explanation
Ref. No.
Debit
Credit
1
Raw Materials Inventory
$54,500
Accounts Payable
$54,500
(To record purchase of materials on account)
2
Work in Process Inventory
$30,500
Manufacturing Overhead
$8,000
Raw Materials Inventory
$38,500
(To record raw materials transferred to work in process and manufacturing overhead)
3
Factory Labor
$62,500
Factory Wages Payable
$50,500
Payroll Taxes Payable
$12,000
(To record wages payable and payroll taxes payable)
4
Work in Process Inventory
$54,700
Manufacturing overhead
$7,800
Factory Labor
$62,500
(To record direct labor and indirect labor costs)
5
Manufacturing overhead
$84,900
Accounts Payable
$84,900
(to record overhead expenses incurred on account)
6
Non-Manufacturing Cost Depreciation Expense
$8,800
Accumulated Depreciation - Buildings
$8,800
(To record depreciation expense on building)
7
Work in Process Inventory
$82,050
Manufacturing overhead
$82,050
(Manufacturing overhead applied at 150% of direct labor cost, 150% x $54,700 = $82,050)
8
Finished Goods Inventory
$91,400
Work in Process Inventory
$91,400
(To record transfer of completed goods transferred to finished goods)
9
Accounts Receivable
$109,700
Sales
$109,700
(To record sale)
Cost of Goods Sold
$75,300
Finished Goods Inventory
$75,300
(To record cost of goods sold)
Journal Entries
No.
Account Titles and Explanation
Ref. No.
Debit
Credit
1
Raw Materials Inventory
$54,500
Accounts Payable
$54,500
(To record purchase of materials on account)
2
Work in Process Inventory
$30,500
Manufacturing Overhead
$8,000
Raw Materials Inventory
$38,500
(To record raw materials transferred to work in process and manufacturing overhead)
3
Factory Labor
$62,500
Factory Wages Payable
$50,500
Payroll Taxes Payable
$12,000
(To record wages payable and payroll taxes payable)
4
Work in Process Inventory
$54,700
Manufacturing overhead
$7,800
Factory Labor
$62,500
(To record direct labor and indirect labor costs)
5
Manufacturing overhead
$84,900
Accounts Payable
$84,900
(to record overhead expenses incurred on account)
6
Non-Manufacturing Cost Depreciation Expense
$8,800
Accumulated Depreciation - Buildings
$8,800
(To record depreciation expense on building)
7
Work in Process Inventory
$82,050
Manufacturing overhead
$82,050
(Manufacturing overhead applied at 150% of direct labor cost, 150% x $54,700 = $82,050)
8
Finished Goods Inventory
$91,400
Work in Process Inventory
$91,400
(To record transfer of completed goods transferred to finished goods)
9
Accounts Receivable
$109,700
Sales
$109,700
(To record sale)
Cost of Goods Sold
$75,300
Finished Goods Inventory
$75,300
(To record cost of goods sold)