Al Ahlia Corporation incurred the following transactions. Purchased raw materials on account $56,300. Raw Materials of $46,800 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $7,500 was classified as indirect materials. Factory labor costs incurred were $54,800, of which $50,000 pertained to factory wages payable and $4,800 pertained to employer payroll taxes payable. Time tickets indicated that $48,000 was direct labor and $6,800 was indirect labor. Overhead costs incurred on account were $90,500. Manufacturing overhead was applied at the rate of 165% of direct labor cost. Goods costing $98,000 were completed and transferred to finished goods. Finished goods costing $85,000 to manufacture were sold on account for $101,500. Instructions Journalise the transactions
Al Ahlia Corporation incurred the following transactions. Purchased raw materials on account $56,300. Raw Materials of $46,800 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $7,500 was classified as indirect materials. Factory labor costs incurred were $54,800, of which $50,000 pertained to factory wages payable and $4,800 pertained to employer payroll taxes payable. Time tickets indicated that $48,000 was direct labor and $6,800 was indirect labor. Overhead costs incurred on account were $90,500. Manufacturing overhead was applied at the rate of 165% of direct labor cost. Goods costing $98,000 were completed and transferred to finished goods. Finished goods costing $85,000 to manufacture were sold on account for $101,500. Instructions Journalise the transactions
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter2: Accounting For Materials
Section: Chapter Questions
Problem 14P: An examination of Buckhorn Fabricators records reveals the following transactions: a. On December...
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Question
Al Ahlia Corporation incurred the following transactions.
- Purchased raw materials on account $56,300.
- Raw Materials of $46,800 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $7,500 was classified as indirect materials.
Factory labor costs incurred were $54,800, of which $50,000 pertained to factory wages payable and $4,800 pertained to employer payroll taxes payable.
- Time tickets indicated that $48,000 was direct labor and $6,800 was indirect labor.
Overhead costs incurred on account were $90,500.- Manufacturing overhead was applied at the rate of 165% of direct labor cost.
- Goods costing $98,000 were completed and transferred to finished goods.
- Finished goods costing $85,000 to manufacture were sold on account for $101,500.
Instructions
Journalise the transactions
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