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, $26,900; and Firing Department, $4,600. Direct labor costs incurred: Molding Department, $16,200; and Firing Department, $4,100. Manufacturing overhead was applied: Molding Department, $25,000; and Firing Department, $39,000. 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 $66,300. 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 $107,300. Finished bricks were sold to customers. According to the company’s process costing system, the cost of the finished bricks sold was $104,600.

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

Journal entry

No	General journal	Debit	Credit
a	Work in process-Molding	26900
	Work in process-Firing	4600
	Raw material		31500
b	Work in process-Molding	16200
	Work in process-Firing	4100
	Wages payable		20300
c	Work in process-molding	25000
	Work in process-Firing	39000
	Manufacturing overhead		64000
d	work in process- Firing	66300
	work in process-Molding		66300
e	Finished goods	107300
	Work in process-Firing		107300
f	Cost of goods sold	104600
	Finished goods		104600