Factory Ledger Entries. The Emco Plastic Company has its general office in Louisville, but has a

Factory Ledger Entries. The Emco Plastic Company has its general office in Louisville, but has a major plant in Evansville. A separate set of records is kept at the home office and at the factory. On November 1 the factory trial balance showed the following

Dr.

Cr.

Materials

$ 3,500

Work in Process

7,800

Finished Goods

6,400

General Ledger

$17,700

Total

$17,700

$17,700

For the month of November the following transactions occurred

:

(a) Materials purchased on account, $23,000.

(b) Direct materials of $12,000 were requisitioned, along with indirect materials of $6,500 and $2,500 of supplies.

(c) Total payroll for November was $30,000. The home office prepared the payroll and the checks and also deducted 6% for PICA tax and 10% for federal income tax. The liability for employer payroll taxes is kept on the home office books. The state unemployment insurance tax rate is 2.1%; the federal unemployment insurance tax rate is .5%. The Evansville payroll consisted of: $3,000, office salaries; $8,000, sales salaries; $6,000, indirect labor; and $13,000, direct labor.

(d) Factory overhead is applied at a rate of 210% of direct labor cost.

(e) Materials costing $275 were defective and were returned to the supplier.

(f) Payments made to vendors on account, $21,500.

(g) $12,000 of various factory overhead expenses is recorded, including $2,000 depreciation on factory machinery.

(h) Goods completed totaled $48,300.

(i) Goods costing $45,000 were sold for $60,000.

Required: Journal entries on the books of the general office and the factory to record the above transactions