Question

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 $33,400 and Assembly $28,200.
6.		Applied overhead at the rate of $21 per machine hour. Machine hours were Cutting 1,720 and Assembly 1,800.
7.		Transferred goods costing $68,290 from the Cutting Department to the Assembly Department.
8.		Transferred goods costing $135,000 from Assembly to Finished Goods.
9.		Sold goods costing $152,800 for $202,700 on account.

Journalize the transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

The Cutting Department of Cassel Company has the following production and cost data for July. Production Costs 1. Transferred out 13,100 units. Beginning work in process $0 2. Started 5,100 units that are 60% Materials 60,060 complete as to conversion Labor 14,568 costs and 100% complete as Manufacturing overhead 22,600 to materials at July 31. Materials are entered at the beginning of the process. Conversion costs are incurred uniformly during the process.

Your answer is correct. Determine the equivalent units of production for (1) materials and (2) conversion costs. Compute unit costs. (Round unit costs to 2 decimal places, e.g. 2.25.) Materials $enter a dollar amount rounded to 2 decimal places Conversion costs $enter a dollar amount rounded to 2 decimal places Prepare a cost reconciliation schedule. (Round unit costs to 2 decimal places, e.g. 2.25 and final answers to 0 decimal places, e.g. 1,225.) Cost Reconciliation Costs accounted for    Transferred out $enter a dollar amount    Work in process, July 31       Materials $enter a dollar amount       Conversion costs enter a dollar amount enter a total of the two previous amounts          Total costs $enter a total amount for this cost reconciliation schedule rounded to 0 decimal places

Answer 1

1.

	General Journal	Debit	Credit
1.	Raw material inventory	$62,700
	Accounts payable		$62,700
2.	Factory wages	$61,600
	Wages payable		$61,600
3.	Manufacturing overhead	$71,600
	Cash		$42,000
	Accounts payable		29,600
4.	Work in process-Cutting	$16,600
	Work in process-Assembly	9,600
	Raw material inventory		$26,200
5.	Work in process-Cutting	$33,400
	Work in process-Assembly	28,200
	Factory wages		$61,600
6.	Work in process-Cutting (1,720*$21)	$36,120
	Work in process-Assembly (1,800*$21)	37,800
	Manufacturing overhead		$73,920
7.	Work in process-Assembly	$68,290
	Work in process-Cutting		$68,290
8.	Finished goods inventory	$135,000
	Work in process-Assembly		$135,000
9.	Accounts receivable	$202,700
	Sales		$202,700
	Cost of goods sold	$152,800
	Finished goods inventory		$152,800