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 $360,000, $147,000, and $96,400, respectively. Also, work in process in the Refining Department at the beginning of the period totaled $32,000, and work in process at the end of the period totaled $28,200.

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

a) Journal entry :

Date	accounts & explanation	debit	credit
Sep 30	Work in process-Refining	360000
	Direct material		360000
	(To record direct material)
Sep 30	Work in process-Refining	147000
	Wages payable		147000
	(To record direct labour)
Sep 30	Work in process-refining	96400
	Factory overhead		96400
	(To record overhead applied)

b) Journal entry :

Date	accounts & explanation	debit	credit
	Work in process-Sifting	607200
	Work in process-refining		607200
	(To record transferred goods from refining to sifting)