Chapter 2, Problem 2.7E

Crawford 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 labor costs incurred were $59,900, of which $51.000 pertained to factory wages payable and $8,900 pertained to employer payroll taxes payable.

4. Time tickets indicated that $54,000 was direct labor and $5,900 was indirect labor.

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 labor 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.)