Exercise 17-4

Schrager Company has two production departments: Cutting and Assembly. July 1 inventories are Raw Materials $4,700, Work in ProcessCutting $3,600, Work in ProcessAssembly $10,800, and Finished Goods $32,300. During July, the following transactions occurred.

1.		Purchased $64,600 of raw materials on account.
2.		Incurred $61,800 of factory labor. (Credit Wages Payable.)
3.		Incurred $71,600 of manufacturing overhead; $41,200 was paid and the remainder is unpaid.
4.		Requisitioned materials for Cutting $17,300 and Assembly $9,600.
5.		Used factory labor for Cutting $34,900 and Assembly $26,900.
6.		Applied overhead at the rate of $20 per machine hour. Machine hours were Cutting 1,740 and Assembly 1,760.
7.		Transferred goods costing $68,840 from the Cutting Department to the Assembly Department.
8.		Transferred goods costing $135,300 from Assembly to Finished Goods.
9.		Sold goods costing $151,700 for $202,800 on account.