Fort Corporation made several transactions in May including purchasing $85,000 of raw materials on account, requisitioning $30,000 of raw materials to the factory with $6,000 classified as indirect materials, and incurring $150,000 in factory labor costs including $120,000 in factory wages payable and $30,000 in employer payroll taxes payable with $126,000 in direct labor and $24,000 in indirect labor.

1. 4. (Chapter 16) Fort Corporation had the following transactions for the month of May. Prepare
the following journal entries for Fort: a. Purchased raw materials on account, $85,000. b. 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. c. Factory labor costs incurred
were $150,000 of which $120,000 pertained to factory wages payable and $30,000 pertained to
employer payroll taxes payable. d. Time tickets indicated that $126,000 was direct labor and
$24,000 was indirect labor.
Solution
Solution :
Journal Entries for Fort
Particulars Debit Credit
Raw materials purchased $85,000
Raw materials $85,000
Work in Process $30,000
Raw materials Inventory $24,000
Indirect materials $6,000
factory wages payable $120,000
employee payroll taxes payable $30,000
factory labor costs
Direct labor $126,000
Indirect labor $24,000
$265,000 $265,000