Sturdy Packaging makes cardboard shipping cartons in a single operation. This pe

Question

Sturdy Packaging makes cardboard shipping cartons in a single operation. This period, Sturdy purchased 125,000 in raw materials. Its production department requisitioned $90,000 of those materials for use in producing cartons. Sturdy Packaging incurred $165,000 in factory payroll costs, of which $110,000 was direct labor. Sturdy Packaging requisitioned $62,000 of indirect materials from its raw materials and used $55,000 of indirect labor in its production of boxes. Also, it incurred $220,000 of other factory overhead costs. It applies factory overhead at the rate of 130% of direct labor costs. (1)Prepare journal entries to record its indirect materials requisitioned. (Omit the "$" sign in your response.) General Journal Debit Credit Factory overhead Raw materials inventory (2)Prepare journal entries to record its indirect labor used in production. (Omit the "$" sign in your response.) General Journal Factory overhead Factory payroll (3)Prepare journal entries to record its other factory overhead costs incurred. (Omit the-s-sign in your response.) General Journal Factory overhead Debit Credit 220000 Other accounts 220000 (4)Prepare journal entries to record its application of overhead to production" (Omit the·S-sign in your response.) General Journal 5 3 Goods in process inw tory Debit 143000 Factory 143000

Explanation / Answer

Factory overhead cost (Indirect material) Dr                                         62,000

Raw materials inventory                               Cr                                         62,000

Factory Overhead                                            Dr                                           110,000

Facotry Payroll                                                  Cr                                            110,000                

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