Fort Corporation had the following transactions during its first month of operations:
1. Purchased raw materials on account $85000.
2. Raw Materials of $30000 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $6000 was classified as indirect materials.
3. Factory labor costs incurred were $175000 of which $145000 pertained to factory wages payable and $30000 pertained to employer payroll taxes payable.
4. Time tickets indicated that $145000 was direct labor and $30000 was indirect labor.
5. Overhead costs incurred on account were $198000.
6. Manufacturing overhead was applied at the rate of 150% of direct labor cost.
7. Goods costing $115000 are still incomplete at the end of the month; the other goods were completed and transferred to finished goods.
8. Finished goods costing $100000 to manufacture were sold on account for $130000.
Instructions
Journalize the above transactions for Fort Corporation.

Question

Quizplus · Accepted Answer

The Answer of Fort Corporation had the following transactions during its first month of operations:
1. Purchased raw materials on account $85000.
2. Raw Materials of $30000 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $6000 was classified as indirect materials.
3. Factory labor costs incurred were $175000 of which $145000 pertained to factory wages payable and $30000 pertained to employer payroll taxes payable.
4. Time tickets indicated that $145000 was direct labor and $30000 was indirect labor.
5. Overhead costs incurred on account were $198000.
6. Manufacturing overhead was applied at the rate of 150% of direct labor cost.
7. Goods costing $115000 are still incomplete at the end of the month; the other goods were completed and transferred to finished goods.
8. Finished goods costing $100000 to manufacture were sold on account for $130000.
Instructions
Journalize the above transactions for Fort Corporation.

Fort Corporation Had the Following Transactions During Its First Month