E3A.4 (102), AP Schrager Company has two production departments: Cutting and Assembly. During July, the following transactions occurred.
1. Purchased $62,500 of raw materials.
2. Incurred $60,000 of factory labor.
3. Incurred $70,000 of manufacturing overhead.
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 $100,000 from Assembly to Finished Goods.
9. Sold goods costing $95,000.
Instructions
Record the transactions using the following format.
MANUFACTURING COSTS
WORK IN PROCESS
Raw Materials Inventory Factory Labor Manufacturing Overhead Cutting Assembly FINISHED GOODS INVENTORYCOST OF GOODS SOLD
1.
2.
3.
4.
5.
6.
7.
8.
9.
Compute physical units and equivalent units of production.
