Zang Co Manufactures Its Products in a Continuous Process Involving Two

question 99

Essay

Zang Co. manufactures its products in a continuous process involving two departments, Machining and Assembly. Prepare journal entries to record the following transactions related to production during June:

(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.

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Definitions:

Default

A failure to fulfill a legal obligation, especially to repay a loan or appear in a court of law.

Lien

A legal right or claim against a property, typically used as security for a debt or obligation.

Construction Company

A business entity engaged in the construction of buildings, infrastructure, and other physical structures.

Mechanic's Lien

A legal claim against a property for unpaid construction work or supplies, giving the lienholder a right to a certain value if the property is sold.