Process Costing

Schrager Company has two production departments: Cutting and Assembly. July 1 inventories are Raw Materials $4,200, Work in process Cutting $2,900, Work in process Assembly $10,600, and Finished Goods $31,000. During July, the following transactions occurred.

1. Purchased $62,500 of raw materials on account.
2. Incurred $60,000 of factory labor. (Credit Wages Payable.)
3. Incurred $70,000 of manufacturing overhead: $40,000 was paid and the remainder is unpaid.
4. Requisitioned materials for Cutting $15,700 and Assembly $8,900
5. Used factory labor for Cutting $33,000 and Assembly $27,000
6. Applied overhead at the rate of $18 per machine hour. Machine hours were Cutting 1,680 and Assembly 1,720
7. Transferred goods costing $134,900 from Assembly to Finished Goods.
8. Sold goods costing $150,000 for $200,000 on account.

Instruction

Journalize the transactions. (Omit explanations.)

Solution