Question 26 Fort Corporation had the following transactions during its first month of operations: 1. 2. 3. 4. Purchased raw materials on account, $85,000. Raw Materials of $30,000 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $6,000 was classified as indirect materials. Factory labor costs incurred were $175,000 of which $145,000 pertained to factory wages payable and $30,000 pertained to employer payroll taxes payable. Time tickets indicated that $145,000 was direct labor and $30,000 was indirect labor. Overhead costs incurred on account were $198,000. Manufacturing overhead was applied at the rate of 150% of direct labor cost. Goods costing $115,000 are still incomplete at the end of the month; the other goods were completed and transferred to finished goods. Finished goods costing $100,000 to manufacture were sold on account for $130,000. 5. 6. 7. 8. Journalize the above transactions for Fort Corporation. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Journalize the above transactions for Fort Corporation. (Record journal entries in the order presented in No. Account Titles and Explanation Debit Credit 1. (To record sales.) (To record cost of goods sold.) List Of Accounts Question 26 Accounts Payable Accounts Receivable Accumulated Depreciation-Buildings Accumulated Depreciation Equipment Cash Cost of Completed Service Contracts Cost of Goods Sold Depreciation Expense Employer Fringe Benefits Payable Employer Payroll Taxes Payable Factory Labor Factory Wages Payable Finished Goods Inventory Manufacturing Overhead Operating Overhead Prepaid Insurance Prepaid Property Taxes Property Tax Payable Raw Materials Inventory Salaries and Wages Payable Sales Revenue Service Contracts in Process Service Salaries and Wages Supplies Utilities Payable Work in Process Inventory