Answer:
1. Purchased raw materials on account $52,200.
Account Debit Credit
Raw Materials Inventory $52,200
Accounts Payable $52,200
2. Raw Materials of $42,600 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $8,500 was classified as indirect materials.
Account Debit Credit
Manufacturing Overhead $8,500
Work-in-Process Inventory $34,100
Raw Materials Inventory $ 42,600
3. Factory labor costs incurred were $60,700, of which $50,200 pertained to factory wages payable and $10,500 pertained to employer payroll taxes payable.
Account Debit Credit
Factory labor $60,700
Wages Payable $50,200
Payroll Taxes $10,500
4. Time tickets indicated that $55,000 was direct labor and $5,700 was indirect labor.
Account Debit Credit
Work-in-Process Inventory $55,000
Manufacturing Overhead $5,700
Factory labor $60,700
5. Manufacturing overhead costs incurred on account were $81,500.
Account Debit Credit
Manufacturing Overhead $81,500
Accounts Payable $81,500
6. Depreciation on the company’s office building was $8,500.
Account Debit Credit
Depreciation Expense $8,500
Accumulated Depreciation $8,500
7. Manufacturing overhead was applied at the rate of 150% of direct labor cost.
Account Debit Credit
Work-in-Process Inventory $82,500
Manufacturing Overhead $82,500
8. Goods costing $93,200 were completed and transferred to finished goods.
Account Debit Credit
Finished Goods Inventory $84,300
Work-in-Process Inventory $84,300
9. Finished goods costing $84,300 to manufacture were sold on account for $113,200.
Account Debit Credit
Sales $113,200
Accounts Receivable $113,200
Cost of Goods Sold $84,300
Finished Goods Inventory $84,300
