Exercise 16-7 incurred the following transactions 1. Purchased raw materials on

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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