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Schrager Company has two production departments: Cutting and Assembly. July 1 inventories are Raw Materials $4,330, Work in Process-Cutting $3,690, work in Process-Assembly $11,240, and Finished Goods $32,940. During July, the following transactions occurred. 囹 1. Purchased $63,650 of raw materials on account. 2. Incurred $61,340 of factory labor. (Credit Wages Payable.) 3. Incurred $71,440 of manufacturing overhead: $42,810 was paid and the remainder is unpaid. 4. Requisitioned materials for Cutting $16,800 and Assembly $9,780 5. Used factory labor for Cutting $33,680 and Assembly $27,660 6. Applied overhead at the rate of $20 per machine hour. Machine hours were Cutting 1,720 and Assembly 1,790. 7. Transferred goods costing $69,420 from the Cutting Department to the Assembly Department. 8. Transferred goods costing $135,310 from Assembly to Finished Goods 9. Sold goods costing $152.670 for $202.310 on account. (Ctrl)
Expert Answer
| Sr.no | Particulars | Debit | Credit |
| 1 | Raw Material Inventory | $63650 | |
| Accounts Payable | $63650 | ||
| (Purchase of Raw Materials on Account) | |||
| 2 | Factory Labour | $61340 | |
| Wages Payable | $61340 | ||
| (Record wages payable) | |||
| 3 | Manufacturing Overhead | $71440 | |
| Accounts Payable | $28630 | ||
| Cash | $42810 | ||
| ( to record Manufacturing Overhead) | |||
| 4 | Work in Progress-Cutting | $16800 | |
| Work in Progress-Assembly | $9780 | ||
| Raw Materials Inventory | $26580 | ||
| ( To record Material requisition by departments) | |||
| 5 | Work in Progress-Cutting | $33680 | |
| Work in Progress-Assembly | $27660 | ||
| Factory Labour | $61340 | ||
| (To record Factory Labour) | |||
| 6 | Work in Progress-Cutting | $34400 | |
| Work in Progress-Assembly | $35800 | ||
| Manufacturing Overhead | $70200 | ||
| TO apply Over head @ $20 per machine hours) | |||
| 7 | Work in Progress-Assembly | $69420 | |
| Work in Progress- Cutting | $69420 | ||
| (Transfer goods from cutting dept. to Assembly Dept. | |||
| 8 | Finished Goods Inventory | $135310 | |
| Work in Progress- Assembly | $135310 | ||
| ( To record transfer of goods from assembly dept to Finished Goods) | |||
| 9 | Accounts Receivable | $202310 | |
| Sales | $202310 | ||
| ( To records Sales of Finished goods) | |||
| Cost of goods Sold | $152670 | ||
| Finished goods Inventory | $152670 | ||
| (To record Cost of goods Sold) |
