Crawford Corporation incurred the following transactions. Purchased raw materials on account $46,300. Raw materials of $36,000 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $6,800 was classified as indirect materials. Factory labor costs incurred were $59,900, of which $51,000 pertained to factory wages payable and $8,900 pertained to employer payroll taxes payable. Time tickets indicated that $54,000 was direct labor and $5,900 was indirect labor. Manufacturing overhead costs incurred on account were $80,500. Depreciation on the company’s office building was $8,100. Manufacturing overhead was applied at the rate of 150% of direct labor cost. Goods costing $88,000 were completed and transferred to finished goods. Finished goods costing $75,000 to manufacture were sold on account for $103,000.
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