Schrager Company has two production departments: Cutting and Assembly.

| November 24, 2016

Question
Schrager Company has two production departments: Cutting and Assembly. July 1 inventories are Raw Materials $4,680, Work in Process—Cutting $3,880, work in Process—Assembly $11,050, and Finished Goods $32,050. During July, the following transactions occurred.

1. Purchased $62,970 of raw materials on account.
2. Incurred $61,160 of factory labor. (Credit Wages Payable.)
3. Incurred $72,120 of manufacturing overhead; $41,260 was paid and the remainder is unpaid.
4. Requisitioned materials for Cutting $15,960 and Assembly $9,410.
5. Used factory labor for Cutting $35,080 and Assembly $26,080.
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 $67,990 from the Cutting Department to the Assembly Department.
8. Transferred goods costing $135,960 from Assembly to Finished Goods.
9. Sold goods costing $152,050 for $201,720 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.)

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