Question

Quality Brick Company produces bricks in two processing departments—Molding and Firing. Information relating to the company’s operations in March follows: Raw materials used in production: Molding Department, $26,400; and Firing Department, $5,200. Direct labor costs incurred: Molding Department, $17,700; and Firing Department, $4,700. Manufacturing overhead was applied: Molding Department, $23,700; and Firing Department, $39,200. 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 $68,100. 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 $108,200. Finished bricks were sold to customers. According to the company’s process costing system, the cost of the finished bricks sold was $105,100.

Answer 1