Question #$3$: $25$ Points

ET Alloy Casting Company of Benicia, California, Inc. had the following transactions

during its first month of operations:

Purchased raw materials on account, $$26,925.$

Raw Materials of $$24,970$ were requisitioned to the factory. An analysis of the materials

requisition slips indicated that $$1,970$ was classified as indirect materials.

Factory labor costs incurred were $$52,185$ of which $$48,270$ pertained to factory wages

payable and $$3,915$ pertained to employer payroll taxes payable.

Time tickets indicated that $$48,400$ was direct labor and $$3,785$ was indirect labor.

Overhead costs incurred on account were $$61,585.$

Manufacturing overhead was applied at the rate of $125\%$ of direct labor cost.

Goods costing $$6,850$ are still incomplete at the end of the month; the other goods were

completed and transferred to finished goods.

Finished goods costing $$21,805$ to manufacture were sold on account for $$42,970.$

Instructions

Journalize the above transactions for ET Alloy Company. Omit Explanations