Sandhill Company has two production departments: Cutting and Assembly. July 1 inventories are Raw Materials $5,040, Work in Process-Cutting $3,480, Work in Process-Assembly $12,720, and Finished Goods $37,200. During July, the following transactions occurred. 1. Purchased $75,000 of raw materials on account. 2. Incurred $72,000 of factory labor. (Credit Wages Payable.) 3. Incurred $84,000 of manufacturing overhead; $48,000 was paid and the remainder is unpaid. 4. A Requisitioned materials for Cutting $18,840 and Assembly $10,680. 5. Used factory labor for Cutting $39,600 and Assembly $32,400. 6. Applied overhead at the rate of $18 per machine hour. Machine hours were Cutting 2,024 and Assembly 2,056. 7. Transferred goods costing $81,120 from the Cutting Department to the Assembly Department. 8. Completed and transferred goods costing $161,880 from Assembly to Finished Goods Inventory. 9. Sold goods costing $180,000 for $240,000 on account. No. Account Titles and Explanation 1. 2. 3. I 4. Debit Credit Question 8 of 11 < > 5. 9 6. 7. 8. -/1 Question 8 of 11 8. 9. (To record the cost of goods sold) (To record the sale) 13 -/1