Question

Fort Corporation had the following transactions during its first month of operations: 1. Purchased raw materials on account, $85,000. 2. Raw Materials of $30,000 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $6,000 was classified as indirect materials. 3. Factory labor costs incurred were $175,000 of which $145,000 pertained to factory wages payable and $30,000 pertained to employer payroll taxes payable. 4. Time tickets indicated that $145,000 was direct labor and $30,000 was indirect labor. 5. Overhead costs incurred on account were $198,000. 6. Manufacturing overhead was applied at the rate of 150% of direct labor cost. 7. Goods costing $115,000 are still incomplete at the end of the month; the other goods were completed and transferred to finished goods. 8. Finished goods costing $100,000 to manufacture were sold on account for $130,000.

Answer 1

Follows are the solution to this question:

Step-by-step explanation:

Services Names and descriptions of the accounts Dr. Cr.

1 Stock of raw resources 85000

Cash-able Accounts 85000

2 Stock of processes (30000-6000) 24000

Overhead of development 6000

Stock of raw materials 30000

3 employment manufacturer 175000

manufacturing plant wages 145000

Payroll Taxes 30000

4 Inventory job in process 145000

Overhead production 30000

Labor Plant 175000

5 Overhead production 198000

Cash-able Accounts 198000

6 Inventory of jobs in the process 217500

`(145000 * 150 \%)`

Overhead of development 217500

7 Inventory of finished products 271500

Inventory job in process 271500

`(24000+145000+217500-115000)`

8 receivable Account 130000

Sales 130000

Wars sold at discount 100000

Inventory of finished products 100000