Exercise 16 - 2

Exercise 16 - 4

E16.2 (LO 2) Harrelson Company manufactures pizza sauce through two production departments: Cooking and Canning. In each process, materials and conversion costs are incurred evenly throughout the process. For the month of April, the work in process accounts show the following debits. Cooking Canning Beginning work in process $ 0 $ 4,000 Materials 21.000 9,000 Labor 8,500 7,6XW) Overhead 31.500 25.800 Costs transferred in 53,000 E16.4 (LO 2) Schrager Company has two production departments: Cutting and Assembly. July 1 invento- ries 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 Payablc.) 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 bours 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 5150,000 for $200,000 on account. Instructions Journalize the transactions. (Omit explanations.)