Garcia Manufacturing uses process costing and has two departments (processes)--Molding and Assembly. All materials (direct and indirect) are recorded in the Raw Materials Inventory account. Garcia completed the following transactions in July:

Factory Overhead

Cash

Accounts Receivable

Materials Inventory

Work in Process Molding

Work in Process Assembly

Finished Goods Inventory

Accounts Payable

Wages Payable

Sales

Cost of Goods Sold

Wages Expense

Miscellaneous Expense

A. Used direct materials in production: $190,000 in Molding; $88,000 in Assembly.

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B. Used $51,000 of indirect materials

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C. Recorded direct labor: $42,000 in Molding; $56,000 in Assembly. These wages will be paid at a later time.

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D. Recorded indirect labor $50,000.

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E. Allocated factory overhead: $65,000 to Molding: $110,000 to Assembly.

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F. Transferred $277,000 of goods from Molding to Assembly

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G. Transferred $578,000 of goods from Assembly to Finished Goods.

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