Mesa Company produces wooden rocking chairs. The company has two production departments, Cutting and Assembly. The wood is cut and sanded in Cutting and then transferred to Assembly to be assembled and painted. From Assembly, the chairs are transferred to Finished Goods Inventory and then are sold.

Mesa has compiled the following information for the month of February:

Required:

Prepare the following journal entries for Mesa:

1. Amount of direct materials, direct labor, and manufacturing overhead incurred for the Cutting Department.

2. Transfer of products from Cutting to Assembly.

3. Amount of direct materials, direct labor, and manufacturing overhead incurred by the Assembly Department.

4. Transfer of chairs from Assembly to Finished Goods.

Transcribed Image Text:

Cutting Department Assembly Department Direct materials $ 24,000 Direct labor Applied manufacturing overhead Cost of goods completed and transferred out $150,000 130,000 300,000 468,000 198,000 334,000 506,000