Question

Schrager Company has two production departments: Cutting and Assembly. During July, the following transactions occurred.

1.		Purchased $63,700 of raw materials.
2.		Incurred $60,200 of factory labor.
3.		Incurred $71,100 of manufacturing overhead.
4.		Requisitioned materials for Cutting $15,900 and Assembly $9,600.
5.		Used factory labor for Cutting $33,800 and Assembly $26,400.
6.		Applied overhead at the rate of $20 per machine hour. Machine hours were Cutting 1,700 and Assembly 1,750.
7.		Transferred goods costing $69,080 from the Cutting Department to the Assembly Department.
8.		Transferred goods costing $135,500 from Assembly to Finished Goods.
9.		Sold goods costing $121,500.

Record the transactions using the following format. Not to use Journalize the transactions.

Answer 1

Journal Entry
No.	Account Titles and Explanation	Debit	Credit
1	Raw Materials Inventory	$     63,700
	Accounts Payable		$     63,700
	(To record purchase of raw material on account)
2	Factory labour	$     60,200
	Wages Payable		$     60,200
	To record factory labor incurred)
3	Manufactuing OH	$     71,100
	Cash		$     71,100
	To record manufacturing overhead incurred)
4	Work in process- Cuttinng	$     15,900
	Work in process- Assembly	$       9,600
	Raw materials inventory		$     25,500
	(To record material used in production)
5	Work in process- Cuttinng	$     33,800
	Work in process- Assembly	$     26,400
	Factory Labor		$     60,200
	(To record factory labor used in production)
6	Work in process- Cuttinng	$     34,000
	Work in process- Assembly	$     35,000
	Manufacturing Overhead		$     69,000
	(To applied manufacturing overhead)
7	Work in process- Assembly	$     69,080
	Work in process- Cutting		$     69,080
	Record completed goods from cutting transferred to the assembly department)
8	Work in process- Assembly	$ 1,35,500
	Work in process- Assembly		$ 1,35,500
	To record completed goods in assembly transferred to finished goods inventory)
9	Cost of goods sold	$ 1,21,500
	Finished goods inventory		$ 1,21,500
	( To record the cost of goods sold)

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