Zang Co. manufacturers its products in a continuous process involving two departments, Machining and Assembly. Present entries to record the following selected transactions related to production during June: For a compound transaction, if an amount box does not require an entry, leave it blank or enter "0".

a. Materials purchased 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

Answer and Explanation:

The Journal entry is shown below:-

a. Material Inventory  Dr, $180,000

    To Accounts Payable $180,000

(Being Material Purchased is recorded)

b.  Work in progress Machining Dept.  Dr, $73,000

Manufacturing Overheads Machining Dept.  Dr, $9,000

Manufacturing Overheads Assembly Dept. Dr, $4,900

        To Material Inventory  $86,900

(Being Material issued to department is recorded)

c. Work in progress Machining Dept.  Dr, $23,000

    Work in progress Assembly Dept.  $47,000

           To Wages Payable  $70,000

(Being Direct Labor used is recorded)

d.  Manufacturing Overheads Machining Dept.  Dr, $4,500

  Man. Overheads Assembly Dept.  Dr, $7,800

              To Depreciation Expense  $12,300

(Being Depreciation allocated is recorded)

e.  Work in progress Machining Dept.  Dr, $9,700

Work in progress Assembly Dept. Dr, $11,300

        To Manufacturing Overheads Machining Dept.  $9,700

        To Manufacturing Overheads Assembly Dept.  $11,300

(Being Factory overheads applied is recorded)

f. Work in progress Assembly Dept.  Dr, $98,300

        To Work in progress Machining Dept.  $98,300

(Being WIP Transferred is recorded)

Finished Goods Inventory  Dr, $83,400

         To Work in progress Assembly Dept.  $83,400

(Being Finished goods transferred is recorded)

g. Accounts Receivables  Dr, $100,000

         To Sales  $100,000

(Being Goods sold on account is recorded)

Cost of Goods sold  Dr, $68,000

              To Finished Goods Inventory   $68,000

(Being Goods sold is recorded)