Greenleaf Manufacturing Company has two production departments: Cutting and assembly.
August 1 inventories are:
Raw Material $4,200
Finished Goods $31,900
Work-in Process Cutting $3,900
Work-in Process Assembly $10,600
Journalize these transactions
1. Purchased raw materials for $56,300
2.Incurreed factor labor - Credit wages payable $55,000
3. Incurred manufacturing overhead $70,000 of this total, $36,000 was paid in cash, the remainder is unpaid
4. Requisitioned materials for cutting is $15,700 and for assembly is $8,900.
5. Used factory labor for cutting $28,000 and for assembly $27,000
6. Applied overhead at the rate of $20 per machine hour. Machine hours were cutting 1,640 and assembly 1,720.
7. Transferred goods costing $77,600 from the cutting department to assembly department.
8. Transferred good costing $135,000 from assembly to finish goods.
9. Sold goods costing $130,000 for $200,000 on account.
The solution explains the journal entries for the given transactions