Schrager Company has two production departments: Cutting and Assembly. July 1 inventories are Raw Materials $4,200, Work in Process-Cutting $3,000, Work in Process-Assembly $11,000, and Finished Goods $30,500. During July, the following transactions occurred.
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1.
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Purchased $62,400 of raw materials on account.
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2.
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Incurred $60,400 of factory labor. (Credit Factory Wages Payable.)
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3.
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Incurred $70,000 of manufacturing overhead; $40,500 was paid and the remainder is unpaid.
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4.
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Requisitioned materials for Cutting $15,500 and Assembly $8,500.
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5.
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Used factory labor for Cutting $26,600 and Assembly $33,800.
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6.
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Applied overhead at the rate of $20 per machine hour. Machine hours were Cutting 1,200 and Assembly 2,100.
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7.
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Transferred goods costing $67,200 from the Cutting Department to the Assembly Department.
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8.
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Transferred goods costing $134,600 from Assembly to Finished Goods.
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9.
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Sold goods costing $149,500 for $200,300 on account.
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