Question: Schrager Company has two production departments: Cutting and Assembly. July 1 inventories are Raw Materials $5, 100, Work in Process-Cutting $3, 600, Work in Process-Assembly $11, 200, and Finished Goods $32, 900. During July, the following transactions occurred.
1. Purchased $62, 700 of raw materials on account.
2. Incurred $61, 400 of factory labor. (Credit Wages Payable.)
3. Incurred $71, 600 of manufacturing overhead; $41, 700 was paid and the remainder is unpaid.
4. Requisitioned materials for Cutting $17, 400 and Assembly $9, 900.
5. Used factory labor for Cutting $34, 300 and Assembly $27, 100.
6. Applied overhead at the rate of $20 per machine hour. Machine hours were Cutting 1, 710 and Assembly 1, 750.
7. Transferred goods costing $68, 950 from the cutting Department to the Assembly Department.
8. Transferred goods costing $135, 400 from Assembly to Finished Goods.
9. Sold goods costing $152, 700 for $201, 500 on account.
Journal the transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)