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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.

FINANCIAL ACCOUNTING
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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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
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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