Question

Schrager Company has two production departments: Cutting and Assembly. July 1 inventories are Raw Materials $5,100, Work in Process—Cutting $3,600, Work in Process—Assembly $11,600, and Finished Goods $32,600. During July, the following transactions occurred.

1.		Purchased $62,700 of raw materials on account.
2.		Incurred $61,600 of factory labor. (Credit Wages Payable.)
3.		Incurred $71,600 of manufacturing overhead; $42,000 was paid and the remainder is unpaid.
4.		Requisitioned materials for Cutting $16,600 and Assembly $9,600.
5.		Used factory labor for Cutting $33,400 and Assembly $28,200.
6.		Applied overhead at the rate of $21 per machine hour. Machine hours were Cutting 1,720 and Assembly 1,800.
7.		Transferred goods costing $68,290 from the Cutting Department to the Assembly Department.
8.		Transferred goods costing $135,000 from Assembly to Finished Goods.
9.		Sold goods costing $152,800 for $202,700 on account.

No. Account Titles and Explanation Debit Credit (To record the cost of goods sold) (To record the sale)

Answer 1

Credit No 1 Accounts Title and Explaination Raw Material inventory Accounts payable Debit $ 62,700.00 $ 62,700.00 (To Record Purchase on account) $ 61,600.00 Factory Labour Wages payable $ 61,600.00 (To Record Factory labour incurred) $ 71,600.00 Manfactuirng Overhead Cash Accounts payable 42,000.00 29,600.00 (To Record MOH Incurred) Work in process - cutting Work in process - assembly Raw Material inventory $ $ 16,600.00 9,600.00 26,200.00 (To Record Materials requisitioned) Work in process - cutting Work in process - assembly Factory Labour $ 33,400.00 $ 28,200.00 $ 61,600.00 (To record factory labour used) Work in process - cutting Work in process - assembly Manfactuirng Overhead $ 36,120.00 $ 37,800.00 $ 73,920.00 (To Record applied OH) $ 68,290.00 Work in process - assembly Work in process - cutting $ 68,290.00 (To record transfer from assembly to cutting) $ 135,000.00 Finished goods inventory Work in process - assembly $ 135,000.00 (To Record transfer from assembly to FG) $ 152,800.00 Cost of goods sold Finished goods inventory $ 152,800.00 (To Record cost of goods sold) $ 202,700.00 Accounts Receivable Sales $ 202,700.00 (To Record sales)