Question

Exercise 3-4 (Video) Schrager Company has two production departments: Cutting and Assembly. July 1 Inventories are Raw Materials $5,100, Work in Process-Cutting $3,200, Work in Process-Assembly $11,200, and Finished Goods $32,000. During July, the following transactions occurred. 1. Purchased 563,700 of raw materials on account. 2. Incurred 560,500 of factory labor. (Credt Wages Payable.) 3. Incurred $71,700 of manufacturing overhead: 541,400 was paid and the remainder is unpaid. 4. Requisitioned materials for Cutting $16,000 and Assembly $9,900. 5. Used factory labor for Cutting $33,600 and Assembly $26,900. 6. Applied overhead at the rate of $21 per machine hour. Machine hours were Cutting 1,700 and Assembly 1,790. 7. Transferred goods costing $60,100 from the Cutting Department to the Assembly Department. 6. Transferred goods costing S136,300 from Assembly to Finished Goods. 9. Sold goods costing $152,400 for $201,900 on account. Journalize the transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Tities and Explanation Debit Credit

Answer 1

	Journal entries
	Particulars	Debit	Credit
1	Raw material	63700
	Accounts payable		63700
2	Factory labor	60500
	Wages payable		60500
3	Manufacturing overheads	71700
	Cash		41400
	Accounts payable		30300
4	Work in process cutting	16800
	Work in process assembly	9900
	Raw material		26700
5	Work in process cutting	33600
	Work in process assembly	26900
	Factory payroll		60500
6	Work in process cutting (1700*21)	35700
	Work in process assembly (1790*21)	37590
	Manufacturing overheads		73290
7	Work in process assembly	68180
	Work in process cutting		68180
8	Finished goods	136300
	Work in process assembly		136300
9	Cost of goods sold	152400
	Finished goods		152400
	Accounts receivable	201900
	Sales revenue		201900