Question

Schrager Company has two production departments: Cutting and Assembly. July 1 inventories are Raw Materials $ 4,300, Work in Process—Cutting $ 3,400, Work in Process—Assembly $ 10,700, and Finished Goods $ 32,300. During July, the following transactions occurred. 1. Purchased $ 63,800 of raw materials on account. 2. Incurred $ 60,800 of factory labor. (Credit Wages Payable.) 3. Incurred $ 72,400 of manufacturing overhead; $ 41,600 was paid and the remainder is unpaid. 4. Requisitioned materials for Cutting $ 17,500 and Assembly $ 9,200. 5. Used factory labor for Cutting $ 33,600 and Assembly $ 27,200. 6. Applied overhead at the rate of $ 19 per machine hour. Machine hours were Cutting 1,730 and Assembly 1,750. 7. Transferred goods costing $ 69,260 from the Cutting Department to the Assembly Department. 8. Transferred goods costing $ 136,900 from Assembly to Finished Goods. 9. Sold goods costing $ 152,400 for $ 202,600 on account. Journalize the transactions

Answer 1

Solution:

Journal entries for Schrager Company

Date	Particulars	Debit ($)	Credit ($)
1.	Raw materials inventory Dr	$63,800
	To Accounts payable		$63,800
	(To record accounts payable)
2.	Factory labor Dr	$60,800
	To Wages payable		$60,800
	(To record wages payable)
3.	Manufacturing overhead Dr	$72,400
	To Cash		$ 41,600
	To Accounts payable		$30,800
	(To record manufacturing overhead)
4.	Work in process-Cutting Dr	$17,500
	Work in process-Assembly Dr	$ 9,200.
	To Raw materials inventory		$26,700
	(To redcord Requisitioned materials for Cutting and Assembly)
5.	Work in process-Cutting Dr	$33,600
	Work in process-Assembly Dr	$27,200
	To Factory labor		$60,800
	(To redcord used factory labour for Cutting and Assembly)
6.	Work in process-Assembly Dr	$32,870
	Work in process-Cutting Dr	$33,250
	To Manufacturing overhead		$66,120
	(To redcord Machine hours were for Cutting and Assembly)
7.	Work in process-Assembly Dr	$69,260
	To Work in process-Cutting		$69,260
	(To record Transferred goods costing)
8.	Finished goods inventory Dr	$136,900
	To Work in process-Assembly		$136,900
	(To record Transferred goods costing)
9.	Cost of goods sold Dr	$152,400
	To Finished goods inventory		$152,400
	(To record Sold goods costing )
	Accounts receivable Dr	$202,600
	To Sales		$202,600
	(To record Sold goods costing )