Question

Quality Brick 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, $29,000; and Firing Department, $4,800.
2. Direct labor costs incurred: Molding Department, $17,800; and Firing Department, $5,400.
3. Manufacturing overhead was applied: Molding Department, $22,400; and Firing Department, $35,400.
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 $69,700.
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 $107,700.
6. Finished bricks were sold to customers. According to the company’s process costing system, the cost of the finished bricks sold was $106,300.

Required:

Prepare journal entries to record items (a) through (f) above.

Answer 1

	General Journal	Debit	Credit
a	Work in process-Molding Department	29000
	Work in process-Firing Department	4800
	Raw materials		33800
b	Work in process-Molding Department	17800
	Work in process-Firing Department	5400
	Wages payable		23200
c	Work in process-Molding Department	22400
	Work in process-Firing Department	35400
	Manufacturing overhead		57800
d	Work in process-Firing Department	69700
	Work in process-Molding Department		69700
e	Finished goods	107700
	Work in process-Firing Department		107700
f	Cost of goods sold	106300
	Finished goods		106300