17-4

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.

Purchased $62,500 of raw materials on account

Incurred $60,000 of factory labor. (Credit wages payable)

Incurred $70,000 of manufacturing overhead; $40,000 was paid and the remainder is unpaid

Requisitioned materials for Cutting $15,700 and Assembly $8,900

Used factory labor for Cutting $33,000 and Assembly $27,000

Applied overhead at the rate of $18 per machine hour. Machine hours were Cutting 1,680 and Assembly 1,720

Transferred goods costing $67,600 from the Cutting department to the Assembly department.

Transferred goods costing $134,900 from Assembly to finished goods

Sold goods costing $150,000 for $200,000 on account

Journalize the transactions ( omit explanation)