Question

In: Accounting

Mesa Company produces wooden rocking chairs. The company has two production departments, Cutting and Assembly. The...

Mesa Company produces wooden rocking chairs. The company has two production departments, Cutting and Assembly. The wood is cut and sanded in Cutting and then transferred to Assembly to be assembled and painted. From Assembly, the chairs are transferred to Finished Goods Inventory and then are sold.
      

Mesa has compiled the following information for the month of February:

Cutting Department Assembly
Department
Direct materials $ 150,000 $ 24,000
Direct labor 130,000 198,000
Applied manufacturing overhead 300,000 334,000
Cost of goods completed and transferred out 468,000 506,000

Required:      
Prepare journal entries for the transactions in the Cutting and Assembly Departments of Mesa Company. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

1.Record the transfer of materials to production in the Cutting department.

2 Record the cost of labor in the Cutting department.

3 Record the application of manufacturing overhead in the Cutting department.

4 Record the transfer of work in process inventory from Cutting to Assembly.

5 Record the transfer of materials to production in the Assembly department.

6 Record the cost of labor in the Assembly department.

7 Record the application of manufacturing overhead in the Assembly department.

8 Record the transfer of work in process inventory from Assembly to Finished Goods Inventory.

Solutions

Expert Solution

1.
Account Title Debit Credit
Work-in-process - Cutting Dept. 150000
Raw material 150000
2.
Account Title Debit Credit
Work-in-process - Cutting Dept. 130000
Wages expense 130000
3.
Account Title Debit Credit
Work-in-process - Cutting Dept. 300000
Manufacturing overhead   300000
4.
Account Title Debit Credit
Work-in-process - Assembly Dept. 468000
Work-in-process - Cutting Dept. 468000
5.
Account Title Debit Credit
Work-in-process - Assembly Dept. 24000
Raw material 24000
6.
Account Title Debit Credit
Work-in-process - Assembly Dept. 198000
Wages expense 198000
6.
Account Title Debit Credit
Work-in-process - Assembly Dept. 334000
Manufacturing overhead 334000
7.
Account Title Debit Credit
Finished goods 506000
Work-in-process -- Assembly Dept. 506000

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

Fanning Corporation makes rocking chairs. The chairs move through two departments during production. Lumber is cut...
Fanning Corporation makes rocking chairs. The chairs move through two departments during production. Lumber is cut into chair parts in the cutting department, which transfers the parts to the assembly department for completion. The company sells the unfinished chairs to hobby shops. The following transactions apply to Fanning’s operations for its first year, 2018. (Assume that all transactions are for cash unless otherwise stated.) 1. The company was started when it acquired a $120,000 cash contribution from the owners. 2....
Walton Corporation makes rocking chairs. The chairs move through two departments during production. Lumber is cut...
Walton Corporation makes rocking chairs. The chairs move through two departments during production. Lumber is cut into chair parts in the cutting department, which transfers the parts to the assembly department for completion. The company sells the unfinished chairs to hobby shops. The following transactions apply to Walton’s operations for its first year, Year 1. (Assume that all transactions are for cash unless otherwise stated.) The company was started when it acquired a $125,000 cash contribution from the owners. The...
Fanning Corporation makes rocking chairs. The chairs move through two departments during production. Lumber is cut...
Fanning Corporation makes rocking chairs. The chairs move through two departments during production. Lumber is cut into chair parts in the cutting department, which transfers the parts to the assembly department for completion. The company sells the unfinished chairs to hobby shops. The following transactions apply to Fanning’s operations for its first year, Year 1. (Assume that all transactions are for cash unless otherwise stated.) The company was started when it acquired a $110,000 cash contribution from the owners. The...
Process costing system Eminence Corporation makes rocking chairs. The chairs move through two departments during production....
Process costing system Eminence Corporation makes rocking chairs. The chairs move through two departments during production. Lumber is cut into chair parts in the cutting department, which transfers the parts to the assembly department for completion. The company sells the unfinished chairs to hobby shops. The following transactions apply to Eminence's operations for its first year, 2018. (Assume that all transactions are for cash unless otherwise states.) 1. The company was started when it acquired a $47000 cash contribution from...
Journalize transactions for two processes. (LO 2) Schrager Company has two production departments: Cutting and Assembly....
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...
Schrager Company has two production departments: Cutting and Assembly. July 1 inventories are Raw Materials $...
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...
Schrager Company has two production departments: Cutting and Assembly. July 1 inventories are Raw Materials $4,900,...
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...
Schrager Company has two production departments: Cutting and Assembly. July 1 inventories are Raw Materials $5,100,...
Schrager Company has two production departments: Cutting and Assembly. July 1 inventories are Raw Materials $5,100, Work in Process—Cutting $3,600, Work in Process—Assembly $11,600, and Finished Goods $32,600. During July, the following transactions occurred. 1. Purchased $62,700 of raw materials on account. 2. Incurred $61,600 of factory labor. (Credit Wages Payable.) 3. Incurred $71,600 of manufacturing overhead; $42,000 was paid and the remainder is unpaid. 4. Requisitioned materials for Cutting $16,600 and Assembly $9,600. 5. Used factory labor for Cutting...
Schrager Company has two production departments: Cutting and Assembly. July 1 inventories are Raw Materials $4,400,...
Schrager Company has two production departments: Cutting and Assembly. July 1 inventories are Raw Materials $4,400, Work in Process—Cutting $3,500, Work in Process—Assembly $11,500, and Finished Goods $32,200. During July, the following transactions occurred. 1. Purchased $64,600 of raw materials on account. 2. Incurred $60,200 of factory labor. (Credit Wages Payable.) 3. Incurred $72,800 of manufacturing overhead; $41,600 was paid and the remainder is unpaid. 4. Requisitioned materials for Cutting $17,200 and Assembly $9,600. 5. Used factory labor for Cutting...
Schrager Company has two production departments: Cutting and Assembly. July 1 inventories are Raw Materials $4,700,...
Schrager Company has two production departments: Cutting and Assembly. July 1 inventories are Raw Materials $4,700, Work in Process—Cutting $3,800, Work in Process—Assembly $11,500, and Finished Goods $32,000. During July, the following transactions occurred. 1. Purchased $63,800 of raw materials on account. 2. Incurred $60,100 of factory labor. (Credit Wages Payable.) 3. Incurred $72,000 of manufacturing overhead; $42,200 was paid and the remainder is unpaid. 4. Requisitioned materials for Cutting $17,500 and Assembly $9,900. 5. Used factory labor for Cutting...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT