Zang Co. manufacturs its products in a continuous process involving two departments, Machining and Assembly. The following transactions are related to production during June:

(a)	Materials purchased (on June 1) on account, $180,000.
(b)	Materials requisitioned by: Machining, $73,000 direct and $9,000 indirect materials; Assembly, $4,900 indirect materials.
(c)	Direct labor used by Machining, $23,000; Assembly, $47,000.
(d)	Depreciation expenses: Machining, $4,500; Assembly, $7,800.
(e)	Factory overhead applied: Machining, $9,700; Assembly, $11,300.
(f)	Machining Department transferred $98,300 to Assembly Department; Assembly Department transferred $83,400 to finished goods.
(g)	Sold goods on account, $100,000; cost of goods sold, $68,000.

	Required:
	Prepare journal entries to record the transactions related to production on June 30. Refer to the Chart of Accounts for exact wording of account titles. (Note: Prepare transactions f and g in two separate entries.)

X

General Journal

CHART OF ACCOUNTS

General Ledger

	ASSETS
110	Cash
121	Accounts Receivable
122	Supplies
123	Prepaid Insurance
130	Materials
132	Work in Process-Machining
133	Work in Process-Assembly
134	Factory Overhead-Machining
135	Factory Overhead-Assembly
136	Finished Goods
181	Land
191	Fixed Assets
192	Accumulated Depreciation

	LIABILITIES
210	Accounts Payable
231	Notes Payable
232	Interest Payable
251	Wages Payable

	EQUITY
311	Common Stock
340	Retained Earnings
351	Dividends
390	Income Summary

	REVENUE
410	Sales

	EXPENSES
510	Cost of Goods Sold
520	Wages Expense
531	Insurance Expense
532	Utilities Expense
533	Supplies Expense
560	Depreciation Expense
590	Miscellaneous Expense
710	Interest Expense

X

General Journal

Prepare journal entries to record the materials purchased on June 1 and transactions related to production on June 30. Refer to the Chart of Accounts for exact wording of account titles. (Note: Prepare transactions f and g in two separate entries.)

JOURNAL

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
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