Question

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.

Answer 1

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