Rock-On Company produces wooden rocking chairs. The company has two sequential production...
Question:
Rock-On Company produces wooden rocking chairs. The company has two sequential 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 they are sold.
Rock-On has compiled the following information for the month of February.
| Cutting Department | Assembly Department | |
| Direct materials | $75,000 | $12,000 |
| Direct labor | 65,000 | 99,000 |
| Applied manufacturing overhead | 150,000 | 167,000 |
| Cost of goods completed and transferred out | 234,000 | 253,000 |
Prepare the following journal entries for Rock-On:
1. Amount of direct materials, direct labor, and manufacturing overhead incurred for the Cutting department.
2. Transfer of products from Cutting to Assembly.
3. Amount of direct materials, direct labor, and manufacturing overhead incurred by the Assembly department.
4. Transfer of chairs from Assembly to Finished Goods.
Product Costs:
Product costs include the costs incurred in producing goods for customers. Direct materials, direct labor, and manufacturing overhead are product costs, reported as expenses upon the product's sale.
Answer and Explanation: 1
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| Date | Accounts | Debit | Credit |
| 1) | Work-in-Process - Cutting Department | 290,000 | |
| _____Raw Mateials Inventory | 75,000 | ||
| _&#... |
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