Exercise 21-4Schrager Company has two production departments: Cutting and Assemb

Exercise 21-4Schrager Company has two production departments: Cutting and Assembly. July 1 inventories are Raw Materials $4200 Work in ProcessCutting $3000 Work in ProcessAssembly $11000 and Finished Goods $30500. During July the following transactions occurred.1.Purchased $62400 of raw materials on account.2.Incurred $60400 of factory labor. (Credit Factory Wages Payable.)3.Incurred $70000 of manufacturing overhead; $40500 was paid and the remainder is unpaid.4.Requisitioned materials for Cutting $15500 and Assembly $8500.5.Used factory labor for Cutting $26600 and Assembly $33800.6.Applied overhead at the rate of $20 per machine hour. Machine hours were Cutting 1200 and Assembly 2100.7.Transferred goods costing $67200 from the Cutting Department to the Assembly Department.8.Transferred goods costing $134600 from Assembly to Finished Goods.9.Sold goods costing $149500 for $200300 on account.