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Zang Co manufacturers its products in a continuous process involvin

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Zang Co. manufacturers its products in a continuous
process involving two departments, Machining and
Assembly. Present entries to record the following selected
transactions related to production during June:
For a compound transaction, if an amount box does not
require an entry, leave it blank or enter \"0\".
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.
Solution
Answer:
Journal Entries
S.No.
Accounts/ Explanation

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Debit
Credit
a.
Material Inventory
$ 180,000
Accounts Payable
$ 180,000
(Being Material Purchased on account)
b.
WIP Machining Dept.
$ 73,000
Man. Overheads Machning Dept.
$ 9,000
Man. Overheads Assembly Dept.
$ 4,900
Material Inventory
$ 86,900
(Being Material issued to departments )
c.
WIP Machining Dept.
$ 23,000
WIP Assembly Dept.
$ 47,000
Wages Payable
$ 70,000

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Zang Co. manufacturers its products in a continuous process involving two departments, Machining and Assembly. Present entries to record the following selected transactions related to production during June: For a compound transaction, if an amount box does not require an entry, leave it blank or enter \"0\". 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. Solution Answer: Journal Entries S.No. Accounts/ Explanation Debit Credit a. Material Inventory $ 180,000 Accounts Payable $ 180,000 (Being Material Purchased on account) b. WIP Machining Dept. $ 73,000 Man. Overheads Machning Dept. $ 9,000 Man. Overheads Assembly Dept. $ 4,900 Material Inventory $ 86,900 (Being Material issued to departments ) c. WIP Machining Dept. $ 23,000 WIP Assembly Dept. $ 47,000 Wages Payable $ 70,000 (Being Direct Labor used ) d. Man. Overheads Machning Dept. $ 4,500 Man. Overheads Assembly Dept. $ 7,800 Depreciation Expense $ 12,300 (Being Depreciation allocated) e. WIP M ...
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