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Schrager Company has two production departments: Cutting and Assembly. July 1 inventories are Raw Materials $4,800, Work in Process-Cutting $3,000. Workin Process-Assembly $11,200, and Finished
Schrager Company has two production departments: Cutting and Assembly. July 1 inventories are Raw Materials $4,800, Work in Process-Cutting $3,000. Workin Process-Assembly $11,200, and Finished Goods $32,500. During July, the following transactions occurred. 1. Purchased $64,500 of raw materials on account. 2. Incurred $62,000 of factory labor. (Credit Wages Payable.) 3. Incurred $71,100 of manufacturing overhead; $42.700 was paid and the remainder is unpaid. 4. Requisitioned materials for Cutting $17,300 and Assembly $9,500. 5. Used factory labor for Cutting $33,400 and Assembly $28,600. 6. Applied overhead at the rate of $21 per machine hour. Machine hours were Cutting 1,730 and Assembly 1,760 . 7. Transferred goods costing $69,480 from the Cutting Department to the Assembly Department. 8. Transferred goods costing $136,900 from Assembly to Finished Goods. 9. Sold goods costing $152,600 for $201,900 on account: No. Account Titles and Explanation Debit Credit 1. 2. 3. 4. 5. 6. 7. 8. 9. (To record the cost of goods sold) (Th recond the sale)
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