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 $4,500, Work in Process—Cutting $3,910, work in Process—Assembly $10,720, and Finished Goods $32,020. During July, the following transactions occurred.

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.

1. Purchased $63,810 of raw materials on account. 2. Incurred $61,900 of factory labor. (Credit Wages Payable.) 3. Incurred $71,790 of manufacturing overhead; $41,030 was paid and the remainder is unpaid. 4. Requisitioned materials for Cutting $17,380 and Assembly $9,100. 5. Used factory labor for Cutting $33,610 and Assembly $28,290. 6. Applied overhead at the rate of $19 per machine hour. Machine hours were Cutting 1,730 and Assembly 1,790. 7. Transferred goods costing $69,630 from the Cutting Department to the Assembly Department. 8. Transferred goods costing $136,650 from Assembly to Finished Goods. 9. Sold goods costing $152,220 for $202,430 on account.

Explanation / Answer

1. raw material Dr. $63810

To Accounts Payable $63810

( being purchased of $63,810 of raw materials on account.)

2 . factory labour Dr. 61900

To Wages payable $61900

( Being $61,900 of factory labor outstanding )

3. manufacturing Overhead Dr. 71790

To cash 41030

To Accounts payable 30760

( Being $71,790 of manufacturing overhead; $41,030 was paid and the remainder is unpaid.)

4. work in progress - Cutting Dr. 17380

work in progress- assembly Dr. 9100

To Raw material 26480

(Being  materials sent for completion for Cutting $17,380 and Assembly $9,100)

5.    work in progress - Cutting Dr. 33610

work in progress- assembly Dr. 28290

To Factory labour 61900

( being  factory labor used for Cutting $33,610 and Assembly $28,290.)

6. work in progress- cutting Dr.32870

work in progress- assembly Dr. 34010

To manufacturing overhead 66880

( being overhead at the rate of $19 per machine hour.Cutting (1,730*19) and Assembly (1,790*19) )

7.    work in progress- assembly Dr. 69630

To work in progress- cutting 69630

(Being goods costing $69,630 tranfered from the Cutting Department to the Assembly Department.)

8. Finished goods Dr. 136650

To work in progress- assembly 136650

(Being goods costing transferred $136,650 from Assembly to Finished Goods.)

9. cost of goods sold Dr. 152220

To Finished goods 152220

(being goods costing $152,220 are sold)

  

Accounts Receivable Dr.202430

To sale 202430

(being goods costing $152,220 for 202430 are sold on account)

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