Question

Chocolaterie de Geneve, SA, is located in a French-speaking canton in Switzerland. The company makes chocolate truffles that are sold in popular embossed tins. The company has two processing departments—Cooking and Molding. In the Cooking Department, the raw ingredients for the truffles are mixed and then cooked in special candy-making vats. In the Molding Department, the melted chocolate and other ingredients from the Cooking Department are carefully poured into molds and decorative flourishes are applied by hand. After cooling, the truffles are packed for sale. The company uses a process costing system. The T-accounts below show the flow of costs through the two departments in April:

Work in Process—Cooking
Balance 4/1	12,000	Transferred out	759,000
Direct materials	326,000
Direct labor	257,000
Overhead	191,000

Work in Process—Molding
Balance 4/1	23,000	Transferred out	977,000
Transferred in	759,000
Direct labor	116,000
Overhead	94,000

Prepare journal entries showing the flow of costs through the two processing departments during April. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Record issuance of raw materials.

Record the direct labor incurred.

Record entry to apply manufacturing overhead.

Record the work completed in Cooking Department.

Record the work completed in Molding Department.

Answer 1

Journal Entries:
	Accounts Titles	Debit $	Credit $
1	WIP - cooking	326000
	Direct Material		326000
	(booking DM in cooking unit)
2	WIP - cooking	257000
	Direct Labor payable		257000
	(booking DL in cooking unit)
3	WIP - cooking	191000
	Manufacturing Overhead		191000
	(booking overhead in cooking unit)
4	WIP - Molding	759000
	WIP - Cooking		759000
	(transfer of semi-finished product to molding)
5	WIP - molding	116000
	Direct Labor payable		116000
	(booking direct labor in molding unit)
6	WIP - molding	94000
	Manufacturing Overhead		94000
	(booking overhead in molding unit)
7	FG Inventory	977000
	WIP - molding		977000
	(finished goods transferred from molding unit)