Sandhill Corporation had the following transactions during its first month of operations: 1. 2. 3. 4. 5. 6. 7. 8. Purchased raw materials on account, $83,300. Raw materials of $29,400 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $5,880 was classified as indirect materials. Factory labor costs incurred were $171,500 of which $142,100 pertained to factory wages payable and $29,400 pertained to employer payroll taxes payable. Time tickets indicated that $142,100 was direct labor and $29.400 was direct labor. Overhead costs incurred on account were $194,040. Manufacturing overhead was applied at the rate of 150% of direct labor cost. Goods costing $112,700 are still incomplete at the end of the month; the other goods were completed and transferred to finished Goods Inventory. Finished Goods Inventory with a cost of $98,000 was sold on account for $127,400.
Sandhill Corporation had the following transactions during its first month of operations: 1. 2. 3. 4. 5. 6. 7. 8. Purchased raw materials on account, $83,300. Raw materials of $29,400 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $5,880 was classified as indirect materials. Factory labor costs incurred were $171,500 of which $142,100 pertained to factory wages payable and $29,400 pertained to employer payroll taxes payable. Time tickets indicated that $142,100 was direct labor and $29.400 was direct labor. Overhead costs incurred on account were $194,040. Manufacturing overhead was applied at the rate of 150% of direct labor cost. Goods costing $112,700 are still incomplete at the end of the month; the other goods were completed and transferred to finished Goods Inventory. Finished Goods Inventory with a cost of $98,000 was sold on account for $127,400.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Ff.96.

Transcribed Image Text:Sandhill Corporation had the following transactions during its first month of operations:
1.
2.
3.
4.
5.
6.
7.
8.
Purchased raw materials on account, $83,300.
Raw materials of $29,400 were requisitioned to the factory. An analysis of the materials requisition slips indicated that
$5,880 was classified as indirect materials.
Factory labor costs incurred were $171,500 of which $142,100 pertained to factory wages payable and $29,400 pertained
to employer payroll taxes payable.
Time tickets indicated that $142,100 was direct labor and $29,400 was direct labor.
Overhead costs incurred on account were $194,040.
Manufacturing overhead was applied at the rate of 150% of direct labor cost.
Goods costing $112,700 are still incomplete at the end of the month; the other goods were completed and transferred to
finished Goods Inventory.
Finished Goods Inventory with a cost of $98,000 was sold on account for $127,400.
Question 2 of 3
No. Account Titles and Explanation
1.
2.
3,
4
Raw Materials Inventory
5.
Accounts Payable
Work in Process Inventory
Manufacturing Overhead
Raw Materials Inventory
Factory Labor
Debit
I
83300
23520
5880
Credit
83300
29400
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