Radford 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 $381,000, $149,000, and $96,200,
respectively. Also, work in process in the Refining Department at
the beginning of the period totaled $30,000, and work in process at
the end of the period totaled $28,600.
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 the exact wording of the
account titles. CNOW journals do not use lines for spaces or
journal explanations. Every line on a journal page is used for
debit or credit entries. Do not add explanations or skip a line
between journal entries. CNOW journals will automatically indent a
credit entry when a credit amount is entered.
|
| CHART
OF ACCOUNTS |
|
Radford Inc. |
|
General Ledger |
|
ASSETS |
| 110 |
Cash |
| 121 |
Accounts Receivable |
| 125 |
Notes Receivable |
| 126 |
Interest Receivable |
| 131 |
Materials |
| 141 |
Work in Process-Refining
Department |
| 142 |
Work in Process-Sifting
Department |
| 143 |
Work in Process-Packing
Department |
| 151 |
Factory Overhead-Refining
Department |
| 152 |
Factory Overhead-Sifting
Department |
| 153 |
Factory Overhead-Packing
Department |
| 161 |
Finished Goods |
| 171 |
Supplies |
| 172 |
Prepaid Insurance |
| 173 |
Prepaid Expenses |
| 181 |
Land |
| 191 |
Factory |
| 192 |
Accumulated
Depreciation-Factory |
|
LIABILITIES |
| 210 |
Accounts Payable |
| 221 |
Utilities Payable |
| 231 |
Notes Payable |
| 236 |
Interest Payable |
| 251 |
Wages Payable |
|
EQUITY |
| 311 |
Common Stock |
| 340 |
Retained Earnings |
| 351 |
Dividends |
| 390 |
Income Summary |
|
|
REVENUE |
| 410 |
Sales |
| 610 |
Interest Revenue |
|
EXPENSES |
| 510 |
Cost of Goods Sold |
| 520 |
Wages Expense |
| 531 |
Selling Expenses |
| 532 |
Insurance Expense |
| 533 |
Utilities Expense |
| 534 |
Supplies Expense |
| 540 |
Administrative Expenses |
| 561 |
Depreciation Expense-Factory |
| 590 |
Miscellaneous Expense |
| 710 |
Interest Expense |
|