Accounts Payable Accounts Receivable Accumulated Depreciation-Buildings Accumula
ID: 2489000 • Letter: A
Question
Accounts Payable
Accounts Receivable
Accumulated Depreciation-Buildings
Accumulated Depreciation-Equipment
Cash
Cost of Completed Service Contracts
Cost of Goods Sold
Depreciation Expense
Employer Fringe Benefits Payable
Employer Payroll Taxes Payable
Factory Labor
Factory Wages Payable
Finished Goods Inventory
Manufacturing Overhead
Operating Overhead
Prepaid Property Taxes
Raw Materials Inventory
Salaries and Wages Expense
Salaries and Wages Payable
Sales
Service Contracts in Process
Supplies
Utilities Payable
Work in Process Inventory
Torre Corporation incurred the following transactions.
1.
Purchased raw materials on account $52,520.
2.
Raw Materials of $41,130 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $9,190 was classified as indirect materials.
3.
Factory labor costs incurred were $56,260, of which $51,680 pertained to factory wages payable and $4,580 pertained to employer payroll taxes payable.
4.
Time tickets indicated that $51,420 was direct labor and $4,840 was indirect labor.
5.
Manufacturing overhead costs incurred on account were $82,370.
6.
Depreciation on the company’s office building was $8,680.
7.
Manufacturing overhead was applied at the rate of 160% of direct labor cost.
8.
Goods costing $96,710 were completed and transferred to finished goods.
9.
Finished goods costing $79,700 to manufacture were sold on account for $105,540.
Journalize.
No.
Account Titles and Explanation
Debit
Credit
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(To record the sale)
(To record the cost of the sale)
1.
Purchased raw materials on account $52,520.
2.
Raw Materials of $41,130 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $9,190 was classified as indirect materials.
3.
Factory labor costs incurred were $56,260, of which $51,680 pertained to factory wages payable and $4,580 pertained to employer payroll taxes payable.
4.
Time tickets indicated that $51,420 was direct labor and $4,840 was indirect labor.
5.
Manufacturing overhead costs incurred on account were $82,370.
6.
Depreciation on the company’s office building was $8,680.
7.
Manufacturing overhead was applied at the rate of 160% of direct labor cost.
8.
Goods costing $96,710 were completed and transferred to finished goods.
9.
Finished goods costing $79,700 to manufacture were sold on account for $105,540.
Explanation / Answer
1 Raw Materials Inventory 52520 Accounts Payable 52520 2 Work in Process Inventory 31940 Manufacturing Overhead 9190 Raw Materials Inventory 41130 3 Salaries and Wages Payable 56260 Factory Wages Payable 51680 Employer Payroll Taxes Payable 4580 4 Work in Process Inventory 51420 Manufacturing Overhead 4840 Salaries and Wages Payable 56260 5 Manufacturing Overhead 82370 Accounts Payable 82370 6 Manufacturing Overhead 8680 Accumulated Depreciation-Buildings 8680 7 Work in Process Inventory 82272 Manufacturing Overhead 82272 8 Finished Goods Inventory 96710 Work in Process Inventory 96710 9 Accounts Receivable 105540 Sales 105540 Cost of Goods Sold 79700 Finished Goods Inventory 79700 10. Cost of Goods Sold 22808 Manufacturing Overhead 22808