Question

Exercise 3-4 (Video) Schrager Company has two production departments: Cutting and Assembly. July 1 inventories are Raw Materials $5,200, Work in Process—Cutting $3,200, Work in Process—Assembly $10,900, and Finished Goods $32,400. During July, the following transactions occurred. 1. Purchased $62,700 of raw materials on account. 2. Incurred $60,200 of factory labor. (Credit Wages Payable.) 3. Incurred $71,800 of manufacturing overhead; $42,900 was paid and the remainder is unpaid. 4. Requisitioned materials for Cutting $16,500 and Assembly $9,800. 5. Used factory labor for Cutting $34,400 and Assembly $25,800. 6. Applied overhead at the rate of $20 per machine hour. Machine hours were Cutting 1,710 and Assembly 1,770. 7. Transferred goods costing $68,710 from the Cutting Department to the Assembly Department. 8. Transferred goods costing $136,400 from Assembly to Finished Goods. 9. Sold goods costing $152,600 for $202,800 on account. Journalize the transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit 1. 2. 3. 4. 5. 6. 7. 8. 9. (To record the cost of goods sold) (To record the sale)

Answer 1

Journal entries:
S.no.	Accounts title and explanations				Debit $	Credit $
1	Raw material inventory Dr.				62700
	Accounts payable					62700
2	Factory Labor Dr.				60200
	Wages payable					60200
3	manufacturing Overheads Dr.				71800
	Accounts payable					28900
	Cash account					42900
4	Work in process Inventory -Cutting Dr.				16500
	Work in process inventory-Assembly Dr.				9800
	Raw material inventory					26300
5	Work in process Inventory -Cutting Dr.				34400
	Work in process inventory-Assembly Dr.				25800
	Factory Labor					60200
6	Work in process Inventory -Cutting Dr.				34200
	Work in process inventory-Assembly Dr.				35400
	Manufacturing Overheads					69600
7	Work in process inventory-Assembly Dr.				68710
	Work in process-Cutting					68710
8	Finished Goods inventory Dr.				136400
	Work in process inventory-Assembly					136400
9	Accounts receivable Dr.				202800
	Sales revenue					202800
	Cost of goods sold Dr.				152600
	Finished Goods inventory					152600