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, $26,800; and Firing Department, $4,200.

Direct labor costs incurred: Molding Department, $19,700; and Firing Department, $5,300.

Manufacturing overhead was applied: Molding Department, $23,500; and Firing Department, $36,400.

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 $67,900.

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 $107,500.

Finished bricks were sold to customers. According to the company’s process costing system, the cost of the finished bricks sold was $103,400.

1.Record issuance of raw materials for use in production.

2.Record direct labor costs incurred.

3.Record entry to apply manufacturing overhead.

4.Record transfer of unfired, molded bricks from the Molding Department to the Firing Department.

5.Record transfer of finished bricks from the Firing Department to the finished goods warehouse.

6.Record cost of goods sold.

Answer 1

1	Work in process-Molding Department	26800
	Work in process-Firing Department	4200
	Raw materials		31000
2	Work in process-Molding Department	19700
	Work in process-Firing Department	5300
	Wages payable		25000
3	Work in process-Molding Department	23500
	Work in process-Firing Department	36400
	Manufacturing overhead		59900
4	Work in process-Firing Department	70000		(26800+19700+23500)
	Work in process-Molding Department		70000
5	Finished goods	45900		(4200+5300+36400)
	Work in process-Firing Department		45900
6	Cost of goods sold	103400
	Finished goods		103400