Schrager Company has two production departments: Cutting and Assembly. July 1 inventories are Raw Materials $4,200, Work in Process�Cutting $2,900, Work in Process�Assembly $10,600, and Finished Goods $31,000. During July, the following transactions occurred.

1. Purchased $62,500 of raw materials on account.
2. Incurred $60,000 of factory labor. (Credit Factory Wages Payable.)
3. Incurred $70,000 of manufacturing overhead; $40,000 was paid and the remainder is unpaid.
4. Requisitioned materials for Cutting $15,700 and Assembly $8,900.
5. Used factory labor for Cutting $33,000 and Assembly $27,000.
6. Applied overhead at the rate of $18 per machine hour. Machine hours were Cutting 1,680 and Assembly 1,720.
7. Transferred goods costing $67,600 from the Cutting Department to the Assembly Department.
8. Transferred goods costing $134,900 from Assembly to Finished Goods.
9. Sold goods costing $150,000 for $200,000 on account.

Journalize the transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

The journal entries for the given economic events are given below.

Explanation:

                        Account Title                                                  Dr              Cr

1.         Raw Materials Inventory                                      62,500

        Accounts Payable                                                          62,500

2.    Factory Labor                                             60,000

        Wages Payable                                           60,000

3.    Manufacturing Overhead                             70,000

        Cash                                                          40,000

       Accounts Payable                                          30,000

4.  Work in Process—Cutting                              15,700

 Work in Process—Assembly                       8,900

        Raw Materials Inventory                                   24,600

5.  Work in Process—Cutting                              33,000

 Work in Process—Assembly                      27,000

         Factory Labor                                                  60,000

6.  Work in Process—Cutting (1,680 X $18)      30,240

 Work in Process—Assembly (1,720 X $18)       30,960

         Manufacturing Overhead                            61,200

7.  Work in Process—Assembly                       67,600

  Work in Process—Cutting                                  67,600

8.  Finished Goods Inventory                               134,900

  Work in Process—Assembly                          134,900

9.   Cost of Goods Sold                                             150,000

   Finished Goods Inventory                                  150,000

        Accounts Receivable                                     200,000

 Sales Revenue                                                  200,000