Lawrence plc 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 £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.)