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 Assembly Department
Direct materials $150,000 $24,000
Direct labor 130,000 198,000
Applied manufacturing overhead 300,000 334,000
Cost of goods completed and transferred out 468,000 506,000

Required:
Prepare journal entries for the transactions in the Cutting and Assembly Departments of Mesa Company.