Question

Sweeties, Inc., manufactures a sugar product by a continuous process involving three production departments—Refining, Sifting, and Packing. Assume that records indicate that direct materials, direct labor, and applied factory overhead for the first department, Refining, were $381,000, $149,000, and $96,200, respectively. Also, work in process in the Refining Department at the beginning of the period totaled $30,000, and work in process at the end of the period totaled $28,600.

Required:

A.

(1)	On September 30, journalize the entry to record the flow of costs into the Refining Department during the period for direct materials.*
(2)	On September 30, journalize the entry to record the flow of costs into the Refining Department during the period for direct labor.*
(3)	On September 30, journalize the entry to record the flow of costs into the Refining Department during the period for factory overhead.*

B.

On September 30, journalize the entry to record the transfer of production costs to the second department, Sifting.*

*

Refer to the Chart of Accounts for exact wording of account titles.

Answer 1

Note: Kindly confirm the exact wording of account titles per the chart of accounts since the same is not provided with the question.

Transaction	Date	General Journal	Debit	Credit
A.(1)	Sep. 30	Work in process-Refining department	381000
		Raw materials inventory		381000
		(To record direct materials used)
A.(2)	Sep. 30	Work in process-Refining department	149000
		Wages payable		149000
		(To record direct labor costs incurred)
A.(3)	Sep. 30	Work in process-Refining department	96200
		Factory overhead		96200
		(To record factory overheads applied)
B.	Sep. 30	Work in process-Sifting department	627600
		Work in process-Refining department		627600
		(To record costs transferred to Sifting department)

Transfer of production costs from Refining to Sifting = $30000 + $381000 + $149000 + $96200 - $28600 = $627600