Schrager Company has two production departments: Cutting and Assembly. July 1 in

Question

Schrager Company has two production departments: Cutting and Assembly. July 1 inventories are Raw Materials $4,950, Work in Process—Cutting $3,410, work in Process—Assembly $11,380, and Finished Goods $32,240. During July, the following transactions occurred.

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.

1. Purchased $63,160 of raw materials on account. 2. Incurred $61,420 of factory labor. (Credit Wages Payable.) 3. Incurred $71,220 of manufacturing overhead; $42,160 was paid and the remainder is unpaid. 4. Requisitioned materials for Cutting $17,510 and Assembly $9,370. 5. Used factory labor for Cutting $34,380 and Assembly $27,040. 6. Applied overhead at the rate of $20 per machine hour. Machine hours were Cutting 1,690 and Assembly 1,790. 7. Transferred goods costing $69,130 from the Cutting Department to the Assembly Department. 8. Transferred goods costing $135,720 from Assembly to Finished Goods. 9. Sold goods costing $151,900 for $201,040 on account.

Explanation / Answer

NO ACCOUNT EXPLANATION DEBIT $ CREDIT 4 1 RAW MATERILA INVENTORY 63160 CASH 63160 2 WAGES 61420 WAGES PAYBLE 61420 3 MANUFACTURING OVERHEAD 71220 CASH 42160 MANUFACTURING OVERHEAD PAYBLE 29060 4 WORK IN PROCESS OF CUTTING 17510 WORK IN PROCESS OF ASSEMBLY 9370 RAW MATERIAL INVENTORY 26880 5 WORK IN PROCESS OF CUTTING 34380 WORK IN PROCESS OF ASSEMBLY 27040 WAGES 61420 6 MANUFACTURING OVERHEAD CUTTING 33800 MANUFACTURING OVERHEAD ASSEMBLY 35800 MANUFACTURING OVERHEAD 69600 7 WORK IN PROCESS OF ASSEMBLY 69130 WORK IN PROCESS OF CUTTING 69130 8 WORK IN PROCESS OF ASSEMBLY 135720 FINISHED GOODS INVENTORY 135750 9 SALES REVENUE 201040 COST OF GOODS SOLD 151900 CASH 201040 FINISHED GOODS INVENTORY 151900

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.