9 also record sale Exercise 17-4 Your answer is partially correct. Try again. Sc

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9 also record sale

Exercise 17-4 Your answer is partially correct. Try again. Schrager Company has two production departments: Cutting and Assembly. July 1 inventories are Raw Materials $4,400, Work in Process-Cutting $3,300, Work in Process-Assembly $10,800, and Finished Goods $32,000. During July, the following transactions occurred 1. Purchased $63,700 of raw materials on account. 2. Incurred $60,200 of factory labor. (Credit Wages Payable.) 3. Incurred $71,100 of manufacturing overhead; $41,700 was paid and the remainder is unpaid 4. Requisitioned materials for Cutting $15,900 and Assembly $9,600 5. Used factory labor for Cutting $33,800 and Assembly $26,400 6. Applied overhead at the rate of $20 per machine hour. Machine hours were cutting 1,700 and Assembly 1,750. 7. Transferred goods costing $69,080 from the Cutting Department to the Assembly Department. 8. Transferred goods costing $135,500 from Assembly to Finished Goods. 9. Sold goods costing $151,900 for $201,400 on account. Journalize the transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit Raw Materials Inventory 63700 Accounts Payable 63700 Factory Labor 60200 Wages Payable 60200 3. Manufacturing Overhead 71100

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Solution:

Journal Entries - Schrager Company Event Particulars Debit Credit 1 Raw materials inventory Dr $63,700.00         To Accounts payable $63,700.00 (To record purchase of raw material on account) 2 Factory Labor Dr $60,200.00         To Wages Payable $60,200.00 (To record factory labor incurred) 3 Manufacturing overhead Dr $71,100.00         To Cash $41,700.00         To Accounts payable $29,400.00 (To record manufacturing overhead incurred) 4 Work In Process - Cutting Dr $15,900.00 Work In Process - Assembly Dr $9,600.00         To Raw material inventory $25,500.00 (To record material used in production) 5 Work In Process - Cutting Dr $33,800.00 Work In Process - Assembly Dr $26,400.00         To Factory labor $60,200.00 (To record factory labor used in production) 6 Work In Process - Cutting Dr (1700 * $20) $34,000.00 Work In Process - Assembly Dr (1750*$20) $35,000.00         To Manufacturing overhead $69,000.00 (To applied manufacturing overhead) 7 Work In Process - Assembly Dr $69,080.00         To Work In Process - Cutting $69,080.00 (Being completed goods from cutting transferred to assembly department) 8 Finished goods inventory Dr $135,500.00         To Work In Process - Assembly $135,500.00 (Being completed goods in assembly transferred to finished goods inventory) 9a Accounts receivables Dr $201,400.00         To Sales Revenue $201,400.00 (To record sales) 9b Cost of goods sold Dr $151,900.00         To Finished goods inventory $151,900.00 (To record cost of goods sold)

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