Question

Quality Brick Company produces bricks in two processing departments—Molding and Firing. Information relating to the company’s operations in March follows: Raw materials used in production: Molding Department, $27,600; and Firing Department, $4,100. Direct labor costs incurred: Molding Department, $18,100; and Firing Department, $4,100. Manufacturing overhead was applied: Molding Department, $25,000; and Firing Department, $38,900. Unfired, molded bricks were transferred from the Molding Department to the Firing Department. According to the company’s process costing system, the cost of the unfired, molded bricks was $68,500. Finished bricks were transferred from the Firing Department to the finished goods warehouse. According to the company’s process costing system, the cost of the finished bricks was $109,300. Finished bricks were sold to customers. According to the company’s process costing system, the cost of the finished bricks sold was $103,100. Required: Prepare journal entries to record items (a) through (f) above. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Answer 1

Solution

		Debit	Credit
a	Work in process-Molding Department	27,600
	Work in process-Firing Department	4,100
	Raw materials		31,700
b	Work in process-Molding Department	18,100
	Work in process-Firing Department	4,100
	Wages payable		22,200
c	Work in process-Molding Department	25,000
	Work in process-Firing Department	38,900
	Manufacturing overhead		63,900
d	Work in process-Firing Department	68,500
	Work in process-Molding Department		68,500
e	Finished goods	109,300
	Work in process-Firing Department		109,300
f	Cost of goods sold	103,100
	Finished goods		103,100

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