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E3-4 Schrager Company

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E3-4 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 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.

Instructions
Journalize the transactions. (Omit explanations.)

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