Prepare entries for manufacturing and non-manufacturing costs. E3.23 (LO 2, 3, 4, 5) Torre 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 labour costs incurred were $55,900. 4. Time tickets indicated that $50,000 was direct labour and $5,900 was indirect labour. 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 labour 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. Instructions Journalize the transactions. (Omit explanations.)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Prepare entries for manufacturing and non-manufacturing costs.
E3.23 (LO 2, 3, 4, 5) Torre 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 labour costs incurred were $55,900.
4. Time tickets indicated that $50,000 was direct labour and $5,900 was indirect
labour.
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 labour 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.
Instructions
Journalize the transactions. (Omit explanations.)
Transcribed Image Text:Prepare entries for manufacturing and non-manufacturing costs. E3.23 (LO 2, 3, 4, 5) Torre 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 labour costs incurred were $55,900. 4. Time tickets indicated that $50,000 was direct labour and $5,900 was indirect labour. 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 labour 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. Instructions Journalize the transactions. (Omit explanations.)
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