Question

Zang Co. manufactures its products in a continuous process involving two departments, Machining and Assembly. Prepare journal entries to record the following transactions related to production during June: If an amount box does not require an entry, leave it blank. a. Materials purchased on account, $180,000 b. Materials requisitioned by: Machining, $73,000 direct and $9,000 Indirect materials; Assembly, $4,900 Indirect materials c. Direct labor used by Machining, $23,000; Assembly, 547,000. d. Depreciation expenses: Machining. $4,500; Assembly, $7,800 e. Factory overhead applied: Machining, 59,700; Assembly, $11,300. < Previous Next > All work saved Email Instructor Submit Test for Grading

Answer 1

Solution :

Journal Entries
Event	Particulars	Debit	Credit
a	Raw materials inventory Dr	$180,000.00
	To Accounts payable		$180,000.00
	(To record material purchased on account)
b	Work In Process - Machining Dr	$73,000.00
	Manufacturing overhead Dr	$13,900.00
	To Raw materials inventory		$86,900.00
	(To record material used)
c	Work In Process - Machining Dr	$23,000.00
	Work In Process - Assembly Dr	$47,000.00
	To Factory Wages		$70,000.00
	(To record use of direct labor)
d	Manufacturing overhead Dr	$12,300.00
	To Accumulated depreciation		$12,300.00
	(To record depreciation expense)
e	Work In Process - Machining Dr	$9,700.00
	Work In Process - Assembly Dr	$11,300.00
	To Manufacturing overhead		$21,000.00
	(To record overhead applied)
f	Work In Process - Assembly Dr	$98,300.00
	To Work In Process - Machining		$98,300.00
	(To record machining cost transferred to assembly)
	Finished goods inventory Dr	$83,400.00
	To Work In Process - Assembly		$83,400.00
	(Cost of assembly transferred to finished goods)
g	Accounts receivables Dr	$100,000.00
	To Sales revenue		$100,000.00
	(To record sales on account)
	Cost of goods sold Dr	$68,000.00
	To Inventory		$68,000.00
	(To record cost of goods sold)