Crawford Corporation incurred the following transactions. 1. Purchased raw mater
ID: 2553850 • Letter: C
Question
Crawford Corporation incurred the following transactions.
1. Purchased raw materials on account $46,300. 2. Raw Materials of $36,000 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $6,800 was classified as indirect materials. 3. Factory labor costs incurred were $59,900, of which $51,000 pertained to factory wages payable and $8,900 pertained to employer payroll taxes payable. 4. Time tickets indicated that $54,000 was direct labor and $5,900 was indirect labor. 5. Manufacturing overhead costs incurred on account were $80,500. 6. Depreciation on the company’s office building was $8,100. 7. Manufacturing overhead was applied at the rate of 150% of direct labor cost. 8. Goods costing $88,000 were completed and transferred to finished goods. 9. Finished goods costing $75,000 to manufacture were sold on account for $103,000. No. Account Titles and Explanation Debit Credit (1) Raw Materials Inventory 46,300 Accounts Payable 46,300 (2) Work in Process Inventory 29200 Manufacturing Overhead 6800 Raw Materials Inventory 36000 (3) Factory Labor Factory Wages Payable Employer Payroll Taxes Payable (4) Work in Process Inventory Manufacturing Overhead 5900 Factory Labor (5) Manufacturing Overhead Accounts Payable 80500Explanation / Answer
Answer:
Event
Description
Debit
Credit
1
Raw Material Inventory
46300
Account Payable
46300
2
Work in Process Inventory
29200
Manufacturing overhead
6800
Raw Material Inventory
36000
3
Factory Labor
59900
Factory Wages Payable
51000
Employer Payroll Taxes Payable
8900
4
Work in Process Inventory
54000
Manufacturing overhead
5900
Factory Labor
59900
5
Manufacturing overhead
80500
Account payable
80500
6
Depreciation Expense
8100
Accumulated Depreciation—Building
8100
7
Work in Process Inventory
($54,000 X 150%)
81000
Manufacturing overhead applied
81000
8
Finished Goods
88000
Work in Process Inventory
88000
9
Accounts Receivable
103000
Sales Revenue
103000
Cost of Goods Sold
75000
Finished Goods Inventory
75000
Event
Description
Debit
Credit
1
Raw Material Inventory
46300
Account Payable
46300
2
Work in Process Inventory
29200
Manufacturing overhead
6800
Raw Material Inventory
36000
3
Factory Labor
59900
Factory Wages Payable
51000
Employer Payroll Taxes Payable
8900
4
Work in Process Inventory
54000
Manufacturing overhead
5900
Factory Labor
59900
5
Manufacturing overhead
80500
Account payable
80500
6
Depreciation Expense
8100
Accumulated Depreciation—Building
8100
7
Work in Process Inventory
($54,000 X 150%)
81000
Manufacturing overhead applied
81000
8
Finished Goods
88000
Work in Process Inventory
88000
9
Accounts Receivable
103000
Sales Revenue
103000
Cost of Goods Sold
75000
Finished Goods Inventory
75000