Managerial Accounting: Tools for Business Decision Making
7th Edition
ISBN: 9781118334331
Author: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Publisher: WILEY
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Textbook Question
Chapter 3, Problem 3.4E
Journalize transaction for two processes. (LO 2), AP
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 560,000 of factory labor. (Credit Wages Payable.)
3. Incurred $70,000 of manufacturing
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 $67,600 from the Cutting Department to the Assembly Department.
8. Transferred goods costing $134,900 from Assembly to Finished Goods.
9. Sold goods costing $150,000 for $200,000 on account.
Instructions
Journalize the transactions. (Omit explanations.)
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Schrager Company has two production departments: Cutting and Assembly. July 1 inventories are Raw Materials $5,100, Work in Process—Cutting $3,600, Work in Process—Assembly $10,800, and Finished Goods $32,400. During July, the following transactions occurred.
1.
Purchased $63,200 of raw materials on account.
2.
Incurred $62,100 of factory labor. (Credit Wages Payable.)
3.
Incurred $73,000 of manufacturing overhead; $42,000 was paid and the remainder is unpaid.
4.
Requisitioned materials for Cutting $16,800 and Assembly $9,900.
5.
Used factory labor for Cutting $34,700 and Assembly $27,400.
6.
Applied overhead at the rate of $21 per machine hour. Machine hours were Cutting 1,720 and Assembly 1,770.
7.
Transferred goods costing $68,870 from the Cutting Department to the Assembly Department.
8.
Transferred goods costing $135,000 from Assembly to Finished Goods.
9.
Sold goods costing $151,300 for $201,100 on account
Schrager Company has two production departments: Cutting and Assembly. July 1 inventories are Raw Materials $5,100, Work in Process—Cutting $3,600, Work in Process—Assembly $11,200, and Finished Goods $32,900. During July, the following transactions occurred.
1.
Purchased $62,700 of raw materials on account.
2.
Incurred $61,400 of factory labor. (Credit Wages Payable.)
3.
Incurred $71,600 of manufacturing overhead; $41,700 was paid and the remainder is unpaid.
4.
Requisitioned materials for Cutting $17,400 and Assembly $9,900.
5.
Used factory labor for Cutting $34,300 and Assembly $27,100.
6.
Applied overhead at the rate of $20 per machine hour. Machine hours were Cutting 1,710 and Assembly 1,750.
7.
Transferred goods costing $68,950 from the Cutting Department to the Assembly Department.
8.
Transferred goods costing $135,400 from Assembly to Finished Goods.
9.
Sold goods costing $152,700 for $201,500 on account.
Journalize the transactions.…
Al Saffwa Manufacturing 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.
Purchased $62,500 of raw materials for cash.
Incurred $56,000 of factory labor . (Credit Wages Payable 50 % , rest paid in cash.)
Incurred $70,000 of manufacturing overhead; $30,000 was paid and the remainder is unpaid.
Used factory labor for Cutting $29,000 and Assembly $27.000.
Applied overhead at the rate of $15 per machine hour. Machine hours were Cutting 1,720 and Assembly 1,680.
Transferred goods costing $139,400 from Assembly to Finished Goods.
Sold goods costing $180,000 for $220,000 on account.
Instructions
Journalize the transactions in proper journal format . (Omit explanations.)
Chapter 3 Solutions
Managerial Accounting: Tools for Business Decision Making
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