Answer:
Crawford Corporation
Journal Entries:
1. Debit Raw materials inventory $53,800
Credit Accounts payable $53,800
To record the purchase of raw materials on account.
2. Debit Work-in-Process $28,000
Debit Manufacturing overhead $8,500
Credit Raw materials inventory $36,500
To record the requisition of materials.
3. Debit Factory Wages $61,900
Credit Factory Wages Payable $50,000
Credit Employer Payroll Taxes Payable $11,900
To record the factory labor costs.
4. Debit Work-in-Process $54,900
Debit Manufacturing overhead $7,000
Credit Factory Wages $61,900
To record the direct and indirect labor costs.
5. Debit Manufacturing overheads $82,300
Credit Accounts payable $82,300
To record overheads incurred on account.
6. Debit Depreciation expense $9,000
Credit Accumulated depreciation -office building $9,000
To record depreciation expense.
7. Debit Work-in-Process $87,840
Credit Manufacturing overheads $87,840
To record overhead applied at the rate of 160% of direct labor cost.
8. Debit Finished Goods Inventory $96,600
Credit Work-in-Process $96,600
To record the transfer of goods to finished goods.
9. Debit Cost of Goods Sold $79,400
Credit Finished Goods Inventory $79,400
To record the cost of goods sold.
9. Debit Accounts Receivable $106,800
Credit Sales Revenue $106,800
To record the sale of goods on account.
Explanation:
Journal entries are used by Crawford Corporation to record its business transactions as they occur daily. They are the first records of business transactions in the accounting books. They show the accounts to be debited and the others to be credited.
