Question

In: Accounting

. Lang Co. manufacturers its products in a continuous process involving two departments, Machining and Assembly....

. 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

Solutions

Expert Solution

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

ekkarill92 answered 5 months ago
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