Exercise 21-4 Schrager Company has two production departments: Cutting and Assem

Question

Exercise 21-4 Schrager Company has two production departments: Cutting and Assembly. July 1 inventories are Raw Materials $4,200, Work in Process—Cutting $2,900, Work in Process—Assembly $10,600, and Finished Goods $31,000. During July, the following transactions occurred. 1. Purchased $62,500 of raw materials on account. 2. Incurred $60,000 of factory labor. (Credit Wages Payable.) 3. Incurred $70,000 of manufacturing overhead; $40,000 was paid and the remainder is unpaid. 4. Requisitioned materials for Cutting $15,700 and Assembly $8,900. 5. Used factory labor for Cutting $33,000 and Assembly $27,000. 6. Applied overhead at the rate of $18 per machine hour. Machine hours were Cutting 1,680 and Assembly 1,720. 7. Transferred goods costing $67,600 from the Cutting Department to the Assembly Department. 8. Transferred goods costing $134,900 from Assembly to Finished Goods. 9. Sold goods costing $150,000 for $200,000 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 1. 2. 3. 4. 5. 6. 7. 8. 9. (To record the cost of goods sold) (To record the sale) SHOW LIST OF ACCOUNTS LINK TO TEXT

Explanation / Answer

Date Accounts Title Dr Cr 1 Raw material Inventory $62,500 Accounts Payable $62,500 2 Factory Labor $60,000 Wages payable $60,000 3 Manufaturing overhead $70,000 Cash $40,000 Accounts Payable 30000 4 Work in process -Cutting $15,700 Work in process -Assembly 8900 Raw Material Inventory $24,600 5 Work in process -Cutting $33,000 Work in process -Assembly 27000 Factory Labor $60,000 6 Work in process -Cutting (1680*18) $30,240 Work in process -Assembly (1720*18) 30960 Manufaturing overhead $61,200 7 Work in process -Assembly $67,600 Work in process -Cutting $67,600 8 Finished Goods Inventory $134,900 Work in process -Assembly $134,900 9 Cost of Good sold $150,000 Finished Goods Inventory $150,000 Accounts Receivable $200,000 Sales $200,000 If any doubt please comment

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