Zang Co. manufacturers its products in a continuous process involving two departments, Machining and Assembly. Prepare journal entries to record the following transactions related to production during June:
(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

Question

Zang Co. manufacturers its products in a continuous process involving two departments, Machining and Assembly.  Prepare journal entries to record the following transactions related to production during June: 
(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

Quizplus · Accepted Answer

The Answer of Zang Co. manufacturers its products in a continuous process involving two departments, Machining and Assembly.  Prepare journal entries to record the following transactions related to production during June: 
(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

Zang Co Manufacturers Its Products in a Continuous Process Involving Two