Question

15

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, $47,000.

d. Depreciation expenses: Machining, $4,500; Assembly, $7,800.

e. Factory overhead applied: Machining, $9,700; Assembly, $11,300.

f. Machining Department transferred $98,300 to Assembly Department; Assembly Department transferred $83,400 to finished goods.

g. Sold goods on account, $100,000; cost of goods sold, $68,000.

Answer 1

Ans.	Journal Entries
	S. No.	Account Titles and Explanations					Dr. ($)	Cr. ($)
	(a)	Raw Materials					$        180,000
		To Accounts Payable						$        180,000
		(To record Purchase Raw Material on credit)
	(b)	Work in Process-Machining					$          73,000
		To Raw Material Inventory						$          73,000
		(To record direct materials used)
		Factory Overhead-Machining					$            9,000
		Factory Overhead-Assembly					$            4,900
		To Raw Material Inventory						$          13,900
		(To record indirect materials used)
	(c)	Work in Process-Machining					$          23,000
		Work in Process-Assembly					$          47,000
		To Factory Payroll						$          70,000
		(To record Direct Labor used)
	(d)	Manufacturing Overhead					$          12,300
		To Accumulated Depreciation-Machining						$            4,500
		To Accumulated Depreciation-Assembly						$            7,800
		(To record depreciation on factory equipments)
	(e)	Work in Process-Machining					$            9,700
		Work in Process-Assembly					$          11,300
		To Overhead						$          21,000
		(To record overhead applied)
	(f)	Work in Process-Assembly					$          98,300
		To Work in Process-Machining						$          98,300
		(To transfer cost from Machining to Assemly)
		Finished Good Inventory					$          83,400
		To Work in Process inventory						$          83,400
		(To record goods completed)
	(g)	Accounts Receivable					$        100,000
		To Sales						$        100,000
		(To record sales on account)
		Cost of goods Sold					$          68,000
		To Finished Good Inventory						$          68,000
		(To record total cost to job)