Question

Quality Brick Company produces bricks in two processing departments—Molding and Firing. Information relating to the company’s operations in March follows:

1. Raw materials used in production: Molding Department, $27,000; and Firing Department, $5,200.
2. Direct labor costs incurred: Molding Department, $16,800; and Firing Department, $5,000.
3. Manufacturing overhead was applied: Molding Department, $25,400; and Firing Department, $38,900.
4. 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 $69,800.
5. 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 $109,500.
6. Finished bricks were sold to customers. According to the company’s process costing system, the cost of the finished bricks sold was $105,600.

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

a	Work in process-Molding Department	27000
	Work in process-Firing Department	5200
	Raw materials		32200
b	Work in process-Molding Department	16800
	Work in process-Firing Department	5000
	Wages payable		21800
c	Work in process-Molding Department	25400
	Work in process-Firing Department	38900
	Manufacturing overhead		64300
d	Work in process-Firing Department	69800
	Work in process-Molding Department		69800
e	Finished goods	109500
	Work in process-Firing Department		109500
f	Cost of goods sold	105600
	Finished goods		105600