Exercise 15-7 Torre Corporation incurred the following transactions. 1. Purchase

Question

Exercise 15-7 Torre Corporation incurred the following transactions.

1. Purchased raw materials on account $52,340.

2. Raw Materials of $40,170 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $8,060 was classified as indirect materials.

3. Factory labor costs incurred were $59,680, of which $50,080 pertained to factory wages payable and $9,600 pertained to employer payroll taxes payable.

4. Time tickets indicated that $50,890 was direct labor and $8,790 was indirect labor.

5. Manufacturing overhead costs incurred on account were $84,590.

6. Depreciation on the company’s office building was $8,530.

7. Manufacturing overhead was applied at the rate of 160% of direct labor cost.

8. Goods costing $97,820 were completed and transferred to finished goods.

9. Finished goods costing $76,270 to manufacture were sold on account for $106,130. Journalize the transactions.

(Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation Debit Credi

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

(To record the sale)

(To record the cost of the sale)

Explanation / Answer

Manufacturing overhead control account

Transaction Account Title and Explanation Debit Credit $ $ 1 Materials inventory 52,340 Accounts payable 52,340 To record purchase of raw materials on account 2. Work in process inventory 32,110

Manufacturing overhead control account

8,060 Materials inventory 40,170 To record issue of direct and indirect materials for production 3. Work in process inventory 50,890 Manufacturing overhead control 8,790 Payroll payable 59,680 To record the direct and indirect payroll 4. Payroll payable 59,680 Payroll taxes payable 9,600 Cash 50,080 To record payment of payroll and tax deductions 5. Manufacturing overhead control account 84,590 Accounts payable 84,590 To record manufacturing overheads incurred on account 6. Depreciation expense 8,530 Accumulated depreciation- office buiding 8,530 To record depreciation expense on office building 7. Work in process inventory 81,424 Manufacturing overhead contro 81,424 To record application of manufacturing overhead to work in process @ 160% of direct labor cost 8. Finished goods inventory 97,820 Work in process inventory 97,820 To record completion of production 9 Accounts receivable 106,130 Sales 106,130 To record sales on account 10 Cost of goods sold 76,270 Income summary 76,270 To record cost of goods sold

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.