Sanders Company has two production departments: Manufacturing and Finishing. Beginning inventories are: Work in processManufacturing, $6,030; Work
Question:
Sanders Company has two production departments:
Manufacturing and Finishing.
Beginning inventories are:
Work in process—Manufacturing, $6,030;
Work in Progress—Completion, $4,100; and
Finished Products, $5,600.
The following transactions took place during the month:
1. He purchased $40,000 of raw materials on account.
2. You incurred $65,000 of factory labor. Salaries are not paid.
3. Incurred $50,000 of manufacturing overhead; $40,000 was paid and the rest was not paid.
4. Materials required for Fabrication, $10,000 and Finishing, $8,000.
5. Factory labor used for Finishing, $52,000 and Fabrication, $13,000.
6. $45,000 of overhead was applied based on machine hours used in each department. The finishing department used twice as many machine hours as the manufacturing department.
Instructions
Record the transactions of the month.
Expert Answer:
To record the transactions for the month we will use the following accounts 1 Raw Materials Asset 2 ... View the full answer
