Sanders Company has two production departments: Fabricating and Finishing. Beginning inventories are: Work in Process-Fabricating $6030; Work in Process-Finishing $4100; and Finished Goods $5600. During the month the following transactions occurred:
1. Purchased $40000 of raw materials on account.
2. Incurred $75000 of factory labor. Wages are unpaid.
3. Incurred $50000 of manufacturing overhead; $40000 was paid and the remainder is unpaid.
4. Requisitioned materials for Fabricating $10000 and Finishing $8000.
5. Used factory labor for Finishing $60000 and Fabricating $15000.
6. Applied $45000 of overhead based on machine hours used in each department. The Finishing Department used twice as many machine hours as did Fabricating.
Instructions
Journalize the transactions for the month.

Question

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The Answer of Sanders Company has two production departments: Fabricating and Finishing. Beginning inventories are: Work in Process-Fabricating $6030; Work in Process-Finishing $4100; and Finished Goods $5600. During the month the following transactions occurred:
1. Purchased $40000 of raw materials on account.
2. Incurred $75000 of factory labor. Wages are unpaid.
3. Incurred $50000 of manufacturing overhead; $40000 was paid and the remainder is unpaid.
4. Requisitioned materials for Fabricating $10000 and Finishing $8000.
5. Used factory labor for Finishing $60000 and Fabricating $15000.
6. Applied $45000 of overhead based on machine hours used in each department. The Finishing Department used twice as many machine hours as did Fabricating.
Instructions
Journalize the transactions for the month.

Sanders Company Has Two Production Departments: Fabricating and Finishing