Question
ABC Corporation incurred the following transactions. 1. Purchased raw materials on account $52,000. 2. Raw Materials of $45,900 were requisitioned to the factory. An analysis
ABC Corporation incurred the following transactions. 1. Purchased raw materials on account $52,000. 2. Raw Materials of $45,900 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $7,500 was classified as indirect materials. 3. Factory labor costs incurred were $87,000. Time tickets indicated that $81,500 was direct labor and the rest was indirect labor. All workers are paid $20 per hour. 4. Overhead costs incurred on account were $79,500. 5. Factory depreciation was $13,000. 6. Administrative salaries accrued were $25,000. 7. Manufacturing overhead was applied at the rate of $25 per direct labor hour. 8. Goods costing $98,000 were completed and transferred to finished goods. 9. Finished goods costing $83,000 to manufacture were sold on account for $145,000. Instructions: Journalize the transactions.
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