Exercise 16-4 No. Account Titles and Explanation Debit Credit 1. 2. 3. 4. 5. 6.
ID: 2427642 • Letter: E
Question
Exercise 16-4
No.
Account Titles and Explanation
Debit
Credit
1.
2.
3.
4.
5.
6.
7.
8.
9.
Exercise 16-4
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.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.
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.)Explanation / Answer
Journal Entries S No Account Title & Explanation Debit Credit 1 Raw Materials 63,160 To Accounts Payable 63,160 (Being Raw Materials Purchases Recorded) 2 Wages 61,420 To Wages Payable 61,420 (Being Wages Incurred ) 3 Manufacturing Overhead 71,220 To Cash 42,160 To Accounts Payable 29,060 (Being Manufacturing OH incurred and Paid ) 4 Work in Progress 26,880 To Raw Material Cutting 17,510 To Raw Material Assembly 9,370 (Being materials transfers from Other depatments) 5 Work in Progress 61,420 To Wages Payable 61,420 (Being Wages Payable Recorded) 6 Work in Progess 69,600 To Manufacturing OH 69,600 (Manufactuing OH Applied) 7 WIP Inventory -Assembly 69,130 To WIP Inventory -Cutting 69,130 (Being Goods transferred from Cutting to Assembly) 8 Finished Goods 135,720 To WIP Inventory -Assembly 135,720 (Being Finished Goods transferred from Assembly) 9 Cost of Sales 151,900 To Finished Goods 151,900 (Being Entry for Sales of Finished Goods transfer) 10 Sales 201,400 To Cost of Sales 151,900 To Profit 49,500 (Being Entry for Sales Recording)
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