Crawford Corporation incurred the following transactions. Journalize the transac

Question

Crawford Corporation incurred the following transactions.

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

1. Purchased raw materials on account $49,100. 2. Raw Materials of $44,200 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $9,900 was classified as indirect materials. 3. Factory labor costs incurred were $61,900, of which $51,400 pertained to factory wages payable and $10,500 pertained to employer payroll taxes payable. 4. Time tickets indicated that $55,300 was direct labor and $6,600 was indirect labor. 5. Manufacturing overhead costs incurred on account were $81,900. 6. Depreciation on the company’s office building was $8,500. 7. Manufacturing overhead was applied at the rate of 160% of direct labor cost. 8. Goods costing $93,900 were completed and transferred to finished goods. 9. Finished goods costing $76,400 to manufacture were sold on account for $105,700.

Explanation / Answer

S.no. Accounts title and explanations Debit $ Credit $ 1 Raw material inventory Account Dr. 49100      Accounts payable 49100 2 Work in process inventory Account Dr. 34300 Manufacturing Overheads account Dr. 9900       Raw material inventory 44200 3 Factory Wages account Dr. 61900        Payroll Tax payable Account 10500       Wages payable 51400 4 Work in process inventory Account Dr. 55300 Manufacturing Overheads account Dr. 6600       Factory Wages 61900 5 Manufacturing OH Account Dr. 81900      Accounts payable 81900 6 Manufacturing OH Account Dr. 8500      Accumulated depreciation 8500 7 Work in process inventory Account Ddr. 88480       Manufacturing overheads 88480 8 Finished Goods inventory Account Dr. 93900     Work in process inventory 93900 9 Accounts receivable Account Dr. 105700      Sales revenue 105700 Cost of Goods sold Account Dr. 76400     Finished Goods inventory 76400

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