Question

Schrager Company has two production departments: Cutting and Assembly. July 1 inventories are Raw Materials $4,900, Work in Process—Cutting $3,800, Work in Process—Assembly $10,900, and Finished Goods $32,000. During July, the following transactions occurred.

1.		Purchased $64,000 of raw materials on account.
2.		Incurred $61,000 of factory labor. (Credit Wages Payable.)
3.		Incurred $72,000 of manufacturing overhead; $41,500 was paid and the remainder is unpaid.
4.		Requisitioned materials for Cutting $17,300 and Assembly $9,400.
5.		Used factory labor for Cutting $34,700 and Assembly $26,300.
6.		Applied overhead at the rate of $21 per machine hour. Machine hours were Cutting 1,720 and Assembly 1,750.
7.		Transferred goods costing $68,460 from the Cutting Department to the Assembly Department.
8.		Transferred goods costing $135,500 from Assembly to Finished Goods.
9.		Sold goods costing $152,100 for $201,000 on account.

Journalize the transactions

Answer 1

Answer
No.	Account titles and Explanation	Debit	Credit
1	Raw Materials Inventory	$      64,000
	Accounts Payable		$        64,000
2	Factory Labor	$      61,000
	Wages Payable		$        61,000
3	Manufacturing Overhead	$      72,000
	Cash		$        41,500
	Accounts Payable		$        30,500
4	Work in process- Cuttinng	$      17,300
	Work in process- Assembly	$        9,400
	Raw materials inventory		$        26,700
5	Work in process- Cutting	$      34,700
	Work in process- Assembly	$      26,300
	Factory Labor		$        61,000
6	Work in process- Cutting	$      36,120		21*1720
	Work in process- Assembly	$      36,750		21*1750
	Manufacturing Overhead		$        72,870
7	Work in process- Assembly	$      68,460
	Work in process- Cutting		$        68,460
8	Finished goods inventory	$    135,500
	Work in process- Assembly		$      135,500
9	Cost of goods sold	$    152,100
	Finished goods inventory		$      152,100
	( To record the cost of goods sold)
	Accounts receivable	$    201,000
	Sales		$      201,000
	( To record the sale)
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