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Crane Corporation had the following transactions during its first month of operations: 1. Purchased raw materials on account, $88,400. 2. Raw materials of $31,200 were
Crane Corporation had the following transactions during its first month of operations: 1. Purchased raw materials on account, $88,400. 2. Raw materials of $31,200 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $6,240 was classified as indirect materials. 3. Factory labor costs incurred were $182,000 of which $150,800 pertained to factory wages payable and $31,200 pertained to employer payroll taxes payable. 4. Time tickets indicated that $150,800 was direct labor and $31,200 was indirect labor. 5. Overhead costs incurred on account were $205,920. 6. Manufacturing overhead was applied at the rate of 150% of direct labor cost. 7. Goods costing $119,600 are still incomplete at the end of the month; the other goods were completed and transferred to finished Goods Inventory. 8. Finished Goods Inventory with a cost of $104,000 was sold on account for $135,200
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