Question

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 $34,400 and Assembly $25,700.
6.		Applied overhead at the rate of $21 per machine hour. Machine hours were Cutting 1,690 and Assembly 1,780.
7.		Transferred goods costing $68,190 from the Cutting Department to the Assembly Department.
8.		Transferred goods costing $136,900 from Assembly to Finished Goods.
9.		Sold goods costing $152,600 for $202,500 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