The chicago mercantile exchange has announced the introduction of a financial instrument that is based on rainfall in the state of illinois. the standard agreement states that for each inch of rain over and above the average rainfall for a particular month, the seller will pay the buyer $1,000. this instrument could be sold by someone who from above average rainfall, and someone who by above average rainfall should buy the contract.

Mesa company produces wooden rocking chairs. the company has two 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 then are sold.mesa has compiled the following information for the month of february: cutting department assemblydepartmentdirect materials $ 73,000 $ 13,000direct labor 73,000 108,000applied manufacturing overhead 159,000 171,000cost of goods completed and transferred out 233,000 255,000required: 1, 2, 3, & 4. prepare journal entries for the transactions in the cutting and assembly departments of mesa company. (if no entry is required for a transaction/event, select "no journal entry required" in the first account field.)