Fort Corporation Had the Following Transactions During Its First Month

question 158

Essay

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.

---

Definitions:

1980s

A decade marked by significant cultural, political, and technological changes around the world, including the end of the Cold War and the beginning of the personal computing revolution.

Misery Index

An economic indicator created by adding the unemployment rate to the inflation rate, aiming to measure the health of an economy and the well-being of its citizens.

Unemployment

A macroeconomic condition where individuals who are capable of working and are seeking work cannot find employment.

Inflation Rates

The rate expressed in percentage at which the overall price level for goods and services increases, leading to a decline in purchasing power.