Crane Manufacturing Company uses a job order cost system and keeps perpetual inventory records
June
1 Purchased raw materials for $25,200 on account.
8 Raw materials requisitioned by production:
Direct
materials
Indirect
$10,080
materials
1.260
15
Paid factory utilities, $2.646 and repairs for factory equipment, $10,080.
25
25
Incurred $114.000 of factory labor
Time tickets indicated the following
Direct Labor
(7.000 hrs $12
per hel
$84,000
Indirect Labor
(3.000 hrs $10
30,000
App
hou
$114.000
25 Applied manufacturing overhead to production based on a predetermined overhead rate of $9 per direct labor hour worked.
28 Goods costing $18,120 were completed in the factory and were transferred to finished goods inventory.
30 Goods costing $15,120 were sold for $20,120 on account.
