Question

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, $26,400; and Firing Department, $5,000.
2. Direct labor costs incurred: Molding Department, $16,700; and Firing Department, $4,900.
3. Manufacturing overhead was applied: Molding Department, $25,600; and Firing Department, $37,700.
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 $66,500.
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 $108,600.
6. Finished bricks were sold to customers. According to the company’s process costing system, the cost of the finished bricks sold was $105,500.

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

Event	General Journal	Debit	Credit
(a)	Work-in-Process - Molding Department	$26,400
	Work-in-Process - Firing Department	$5,000
	Raw Materials		$31,400
(Being use of direct materials recorded)
(b)	Work-in-Process - Molding Department	$16,700
	Work-in-Process - Firing Department	$4,900
	Wages Payable		$21,600
(Being use of direct labor recorded)
(c)	Work-in-Process - Molding Department	$25,600
	Work-in-Process - Firing Department	$37,700
	Manufacturing Overhead		$63,300
(Being use of manufacturing overhead recorded)
(d)	Work-in-Process - Firing Department	$66,500
	Work-in-Process - Molding Department		$66,500
(Being use of transfer of product recorded)
(e)	Finished Goods	$108,600
	Work-in-Process - Firing Department		$108,600
(Being use of transfer of product recorded)
(f)	Cost of goods sold	$105,500
	Finished Goods		$105,500
(Being use of cost of goods of sold recorded)