Fort Corporation Had the Following Transactions During Its First Month

question 43

Essay

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 $100,000 of which $80,000 pertained to factory wages payable and $20,000 pertained to employer payroll taxes payable.
4. Time tickets indicated that $84,000 was direct labor and $16,000 was indirect labor.
5. Overhead costs incurred on account were $112,000.
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.
Instructions
Journalize the above transactions for Fort Corporation.

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Definitions:

Invitation To Trade

An announcement published for the purpose of creating interest and attracting a response by many people.

Ohio Residents

Individuals who live in or have established domicile within the state of Ohio, U.S.A.

Bait-And-Switch

A deceptive marketing tactic where customers are lured with a promising offer that is unavailable, to sell a different, often pricier, item.

Printed Advertisements

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