Exercise 16-7 incurred the following transactions 1. Purchased raw materials on
ID: 2332058 • Letter: E
Question
Exercise 16-7 incurred the following transactions 1. Purchased raw materials on account $54,900. 2. Raw Materials of $42,500 wer e requisitioned to the factory, An analysis of the materials requisition slips indicated that $8,400 was classified as inds labor costs incurred were $67,100, of which $50,800 pertained to factory wages payable and $16,300 pertained to employer payroll taxes p 4. Time tickets indicated that $54,300 was direct labor and $12,800 was indirect labor. S. Manufacturing overhead costs incurred on account were $84,300. 6. Depreciation on the company's office building was $8,600 7, Manufacturing overhead was applied at the rate of 150% of direct labor cost. 8. Goods costing $90,400 were completed and transferred to finished goods 9. Jour Finished goods costing $82,300 to manufacture were sold on account for $112,700. All Rights Reserved. A Division of to
Explanation / Answer
Answer:
Date
Description
Debit $
Credit $
1
Raw material Inventory
54900
Accounts payable
54900
2
WIP
34100
manufacturing Overhead
8400
Raw material inventory
42500
3
Factory labor
67100
Factory Wages payable
50800
Payroll taxes payable
16300
4
WIP
54300
manufacturing Overhead
12800
Factory labor
67100
5
manufacturing Overhead
84300
Accounts payable
84300
6
Depreciation expanses
8600
Accumulated depreciation
8600
7
WIP (54300*150%)
81450
manufacturing Overhead
81450
8
Finished Goods
90400
WIP
90400
9
Account receivable
112700
Sales Revenue
112700
Date
Description
Debit $
Credit $
1
Raw material Inventory
54900
Accounts payable
54900
2
WIP
34100
manufacturing Overhead
8400
Raw material inventory
42500
3
Factory labor
67100
Factory Wages payable
50800
Payroll taxes payable
16300
4
WIP
54300
manufacturing Overhead
12800
Factory labor
67100
5
manufacturing Overhead
84300
Accounts payable
84300
6
Depreciation expanses
8600
Accumulated depreciation
8600
7
WIP (54300*150%)
81450
manufacturing Overhead
81450
8
Finished Goods
90400
WIP
90400
9
Account receivable
112700
Sales Revenue
112700
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