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

Question

Al Ahlia Corporation incurred the following transactions.

  1. Purchased raw materials on account $56,300.
  2. 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.
  1. Time tickets indicated that $48,000 was direct labor and $6,800 was indirect labor.
  2. Overhead costs incurred on account were $90,500.
  3. 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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Journal and Ledger Balance

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