Question

Schrager Company has two production departments: Cutting and Assembly. July 1 inventories are Raw Materials $4,200, Work in Process�Cutting $2,900, Work in Process�Assembly $10,600, and Finished Goods $31,000. During July, the following transactions occurred.

1. Purchased $62,500 of raw materials on account.
2. Incurred $60,000 of factory labor. (Credit Factory Wages Payable.)
3. Incurred $70,000 of manufacturing overhead; $40,000 was paid and the remainder is unpaid.
4. Requisitioned materials for Cutting $15,700 and Assembly $8,900.
5. Used factory labor for Cutting $33,000 and Assembly $27,000.
6. Applied overhead at the rate of $18 per machine hour. Machine hours were Cutting 1,680 and Assembly 1,720.
7. Transferred goods costing $67,600 from the Cutting Department to the Assembly Department.
8. Transferred goods costing $134,900 from Assembly to Finished Goods.
9. Sold goods costing $150,000 for $200,000 on account.

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

Answer 1

The journal entries for the given economic events are given below.

Step-by-step explanation:

Account Title Dr Cr

1. Raw Materials Inventory 62,500

Accounts Payable 62,500

2. Factory Labor  60,000

Wages Payable 60,000

3. Manufacturing Overhead  70,000

Cash 40,000

Accounts Payable 30,000

4. Work in Process—Cutting 15,700

Work in Process—Assembly 8,900

Raw Materials Inventory  24,600

5. Work in Process—Cutting 33,000

Work in Process—Assembly 27,000

Factory Labor 60,000

6. Work in Process—Cutting (1,680 X $18) 30,240

Work in Process—Assembly (1,720 X $18) 30,960

Manufacturing Overhead 61,200

7. Work in Process—Assembly  67,600

Work in Process—Cutting 67,600

8. Finished Goods Inventory 134,900

Work in Process—Assembly 134,900

9. Cost of Goods Sold 150,000

Finished Goods Inventory 150,000

Accounts Receivable 200,000

Sales Revenue 200,000