In: Accounting
. Lang Co. manufacturers its products in a continuous process involving two departments, Machining and Assembly. Present entries to record the following selected transactions related to production during June:
(a) Materials purchased on account, $225,000
(b) Materials requisitioned by; Machining, $73,000 direct and $9,000 indirect materials; Assembly, $4,900 indirect materials.
(c) Direct labor used by Machining, $23,000, Assembly $47,000.
(D) Depreciation expenses: Machining $2,000, Assembly $8,000
(e) Factory overhead applied: Machining $9,700, Assembly $11,300
(f) Machining Department transferred $98,300 to Assembly Department; Assembly Department transferred $83,400 to finished goods.
(g) Cost of goods sold $72,000
Journal entries | |||
a | Raw material inventory | 225000 | |
Accounts payable | 225000 | ||
b | Work in process inventory - Machining | 73000 | |
Manufacturing overheads- machining | 9000 | ||
Manufacturing overheads- Assembly | 4900 | ||
Raw material inventory | 86900 | ||
c | Work in process inventory - Machining | 23000 | |
Work in process inventory - Assembly | 47000 | ||
Wages payable | 70000 | ||
d | Manufacturing overheads- machining | 2000 | |
Manufacturing overheads- Assembly | 8000 | ||
Accumulated depreciation | 10000 | ||
e | Work in process inventory - Machining | 9700 | |
Work in process inventory - Assembly | 11300 | ||
Manufacturing overheads | 21000 | ||
f | Work in process inventory - Assembly | 98300 | |
Work in process inventory - Machining | 98300 | ||
Finished goods inventory | 83400 | ||
Work in process inventory -assembly | 83400 | ||
g | Cost of goods inventory | 72000 | |
Finished goods inventory | 72000 | ||