Schrager Company has two production departments: Cutting and Assembly. July 1 in

Question

Schrager Company has two production departments: Cutting and Assembly. July 1 inventories are Raw Materials $5,100, Work in Process- Cutting $3,800, Work in Process-Assembly $11,500, and Finished Goods $32,100. During July, the following transactions occurred Purchased $63,800 of raw materials on account. Incurred $61,600 of factory labor. (Credit Wages Payable.) Incurred $71,500 of manufacturing overhead; $41,700 was paid and the remainder is unpaid 4.Requisitioned materials for Cutting $17,300 and Assembly $9,400. s. Used factory labor for Cutting $34,800 and Assembly $26,800 6. Applied overhead at the rate of $21 per machine hour. Machine hours were Cutting 1,710 and Assembly 1,780 . Transferred goods costing $68,480 from the Cutting Department to the 8. Transferred goods costing $136,500 from Assembly to Finished Goods. Sold goods costing $152,800 for $201,200 on account. 9. Journalize the transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) To tocond he oost of goods sold

Explanation / Answer

No Account titles and Explanation Debit Credit 1 Raw Materials Inventory     63,800 Accounts Payable     63,800 2 Factory Labor     61,600 Wages Payable     61,600 3 Manufacturing Overhead     71,500 Cash     41,700 Accounts Payable     29,800 4 Work in Process—Cutting     17,300 Work in Process—Assembly       9,400 Raw Materials Inventory     26,700 5 Work in Process—Cutting     34,800 Work in Process—Assembly     26,800 Factory Labor     61,600 6 Work in Process—Cutting (1,710 X $21)     35,910 Work in Process—Assembly (1,780 X $21)     37,380 Manufacturing Overhead     73,290 7 Work in Process—Assembly     68,480 Work in Process—Cutting     68,480 8 Finished Goods Inventory 136,500 Work in Process—Assembly 136,500 9 Cost of Goods Sold 152,800 Finished Goods Inventory 152,800 Accounts Receivable 201,200 Sales 201,200

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