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 $385,000, $143,000, and $99,000, respectively. Also, work in process in the Refining Department at the beginning of the period totaled $29,600, and work in process at the end of the period totaled $29,800.

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

No	General Journal	Debit	Credit
1	Work in process-Refining Department	385000
	Direct material		385000
2	Work in process-Refining Department	143000
	Direct labor		143000
3	Work in process-Refining Department	99000
	Manufacturing overhead		99000

b) Journal entry

No	General Journal	Debit	Credit
	Work in process-Sifting Department (29600+385000+143000+99000-29800)	626800
	Work in process-Refining Department		626800