Journalize transactions for two processes . (LO 2) Schrager Company has two prod
ID: 2529401 • Letter: J
Question
Journalize transactions for two processes.
(LO 2)
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 $200,000 on account.
Journalize the transactions. (Omit explanations.)
Explanation / Answer
Journal Entries of Schrager Company Date Account Titles and Explanation Debit Credit In ($) July 1 Purchases a/c 62,500 To Accounts Payable a/c 62,500 2 Factory Labour a/c 60,000 To Wages Payable a/c 60,000 3 Manufacturing Overhead a/c 70,000 To Cash a/c 40,000 Manufacturing Overhead Payable a/c 30,000 7 Assembly Department a/c 67,600 To Cutting Department a/c 67,600 8 Finished goods (Inventory) a/c 134,900 To Assembly Department a/c 134,900 9 Accounts Receivable a/c 200,000 To Sales a/c 150,000 Profit and Loss a/c 50,000
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