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 8,000 Transferred out 160,000 Direct materials 42,000 Direct labor 50,000 Overhead 75,000

Work in Process—Molding Balance 4/1 4,000 Transferred out 240,000 Transferred in 160,000 Direct labor 36,000 Overhead 45,000

Required: 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 to apply maufacturing overhead

-Record the work completed in the Cooking Department

-Record the work completed in the molding department

Answer 1

Journal entries:
Work in Process inventory-Cooking Account Dr.					42000
Raw material inventory Account						42000
Work in Process inventory-Cooking Account Dr.					50000
Work in process Inventory-Molding Account Dr.					36000
Wages payable						86000
Work in Process inventory-Cooking Account Dr.					75000
Work in process Inventory-Molding Account Dr.					45000
Factory Overheads Account						120000
Work in process inventory-Molding Account Ddr.					160000
Work in process- Cooking Account						160000
Finished Goods inventory Account Dr.					240000
Work in process inventory-Molding Account						240000