Mesa Company produces wooden rocking chairs The company has

Mesa Company produces wooden rocking chairs. The company has two production departments, Cutting and Assembly. The wood is cut and sanded in Cutting and then transferred to Assembly to be assembled and painted. From Assembly, the chairs are transferred to Finished Goods Inventory and then are sold.
      

Mesa has compiled the following information for the month of February:

Required:      
Prepare journal entries for the transactions in the Cutting and Assembly Departments of Mesa Company. (If no entry is required for a transaction/event, select \"No Journal Entry Required\" in the first account field.)

1.Record the transfer of materials to production in the Cutting department.

2 Record the cost of labor in the Cutting department.

3 Record the application of manufacturing overhead in the Cutting department.

4 Record the transfer of work in process inventory from Cutting to Assembly.

5 Record the transfer of materials to production in the Assembly department.

6 Record the cost of labor in the Assembly department.

7 Record the application of manufacturing overhead in the Assembly department.

8 Record the transfer of work in process inventory from Assembly to Finished Goods Inventory.

	Cutting Department	Assembly Department
Direct materials	$	150,000	$	24,000
Direct labor		130,000		198,000
Applied manufacturing overhead		300,000		334,000
Cost of goods completed and transferred out		468,000		506,000

Solution

1. Account Title Debit Credit Work-in-process - Cutting Dept. 150000 Raw material 150000 2. Account Title Debit Credit Work-in-process - Cutting Dept. 130000 Wages expense 130000 3. Account Title Debit Credit Work-in-process - Cutting Dept. 300000 Manufacturing overhead   300000 4. Account Title Debit Credit Work-in-process - Assembly Dept. 468000 Work-in-process - Cutting Dept. 468000 5. Account Title Debit Credit Work-in-process - Assembly Dept. 24000 Raw material 24000 6. Account Title Debit Credit Work-in-process - Assembly Dept. 198000 Wages expense 198000 6. Account Title Debit Credit Work-in-process - Assembly Dept. 334000 Manufacturing overhead 334000 7. Account Title Debit Credit Finished goods 506000 Work-in-process -- Assembly Dept. 506000