Journalization of transactions for production costs such as of raw materials, labor, processing and overhead using transferred goods data/details.
Douglas Manufacturing Company has two production departments: Cutting and Assembly, July 1 inventories are Raw Materials $5,100, Work in process-Assembly$11,200, and Finished Goods $33,000. During july, the following transactions occurred.
1. Purchased $64,300 of raw materials on account.
2. Incurred $57,500 of factory labor. (Credit Wages Payable)
3. Incurred $71,400 of manufacturing overhead; $42,100 was paid and the remainder is unpaid.
4. Requisitioned materials for Cutting $16,700 and Assembly $9,700.
5. Usde factory labor for Cutting $30,700 and Assembly $27,300.
6. Applied overhead at the rate of $17 per machine hour. Machine hours were Cutting 1,740 and Assembly 1,800.
7. Transferred goods costing $69,600 from the Cutting department to the Assembly department.
8. Transferred goods costing $136,900 from Assembly to Finished goods.
9. Sold goods costing $152,500 for $202,300 on account.
Instructions
Journalize the transactions. (List multiple debit/credit entries in descending order of amount.)