Greivell Manufacturing Company has two production departments: Cutting and Assem
ID: 2442417 • Letter: G
Question
Greivell Manufacturing Company has two production departments: Cutting and Assembly. July 1 inventories are Raw Materials $3,800, Work in Process-Cutting $2,780, Work in Process-Assembly $10,530, and Finished Goods $31,340. During July, the following transactions occurred.
Purchased $61,050 of raw materials on account.
Incurred $55,370 of factory labor. (Credit Wages Payable.)
Incurred $69,020 of manufacturing overhead; $40,740 was paid and the remainder is unpaid.
Requisitioned materials for Cutting $15,160 and Assembly $9,320.
Used factory labor for Cutting $30,270 and Assembly $25,100.
Applied overhead at the rate of $18 per machine hour. Machine hours were Cutting 1,500 and Assembly 1,800.
Transferred goods costing $66,800 from the Cutting Department to the Assembly Department.
Transferred goods costing $134,460 from Assembly to Finished Goods.
Sold goods costing $149,670 for $200,240 on account.
Journalize the transactions
Explanation / Answer
Date
Particulars
Debit
Credit
1
Raw Materials Inventory
$62,500
Accounts Payable
$62,500
2
Factory Labor
$56,000
Wages Payable
$56,000
3
Manufacturing Overhead
70,000
Cash
40,000
Accounts Payable
30,000
4
Work in Process—Cutting
15,700
Work in Process—Assembly
8,900
Raw Materials Inventory
24,600
5
Work in Process—Cutting
29,000
Work in Process—Assembly
27,000
Factory Labor
56,000
6
Work in Process—Cutting (1,680 X $15)
25,200
Work in Process—Assembly (1,720 X $15)
25,800
Manufacturing Overhead
51,000
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 Goods Sold
150,000
Finished Goods Inventory
150,000
Accounts Receivable
200,000
Sales
200,000
Date
Particulars
Debit
Credit
1
Raw Materials Inventory
$62,500
Accounts Payable
$62,500
2
Factory Labor
$56,000
Wages Payable
$56,000
3
Manufacturing Overhead
70,000
Cash
40,000
Accounts Payable
30,000
4
Work in Process—Cutting
15,700
Work in Process—Assembly
8,900
Raw Materials Inventory
24,600
5
Work in Process—Cutting
29,000
Work in Process—Assembly
27,000
Factory Labor
56,000
6
Work in Process—Cutting (1,680 X $15)
25,200
Work in Process—Assembly (1,720 X $15)
25,800
Manufacturing Overhead
51,000
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 Goods Sold
150,000
Finished Goods Inventory
150,000
Accounts Receivable
200,000
Sales
200,000
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