Al Ahlia Corporation incurred the following transactions.Purchased raw materials on account $56,300.Raw Materials of $46,800 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $7,500 was classified as indirect materials.Factory labor costs incurred were $54,800, of which $50,000 pertained to factory wages payable and $4,800 pertained to employer payroll taxes payable.Time tickets indicated that $48,000 was direct labor and $6,800 was indirect labor.Overhead costs incurred on account were $90,500.Manufacturing overhead was applied at the rate of 165% of direct labor cost.Goods costing $98,000 were completed and transferred to finished goods.Finished goods costing $85,000 to manufacture were sold on account for $101,500. InstructionsJournalise the transactions

S.no. Account Titles and Explanation Debit $ Credit $ 1 Raw material Inventory 56,300…

Answered: Al Ahlia Corporation incurred the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Al Ahlia Corporation incurred the following transactions.

Purchased raw materials on account $56,300.
Raw Materials of $46,800 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $7,500 was classified as indirect materials.

Factory labor costs incurred were $54,800, of which $50,000 pertained to factory wages payable and $4,800 pertained to employer payroll taxes payable.

Time tickets indicated that $48,000 was direct labor and $6,800 was indirect labor.
Overhead costs incurred on account were $90,500.
Manufacturing overhead was applied at the rate of 165% of direct labor cost.

Goods costing $98,000 were completed and transferred to finished goods.
Finished goods costing $85,000 to manufacture were sold on account for $101,500.

Instructions

Journalise the transactions

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