Question

Chocolaterie de Geneve, SA, is located in a French-speaking canton in Switzerland. The company makes chocolate truffles that are sold in popular embossed tins. The company has two processing departments—Cooking and Molding. In the Cooking Department, the raw ingredients for the truffles are mixed and then cooked in special candy-making vats. In the Molding Department, the melted chocolate and other ingredients from the Cooking Department are carefully poured into molds and decorative flourishes are applied by hand. After cooling, the truffles are packed for sale. The company uses a process costing system. The T-accounts below show the flow of costs through the two departments in April: Work in Process—Cooking Balance 4/1 11,000 Transferred out 763,000 Direct materials 332,000 Direct labor 258,000 Overhead 189,000 Work in Process—Molding Balance 4/1 18,000 Transferred out 985,000 Transferred in 763,000 Direct labor 122,000 Overhead 94,000 Required: Prepare journal entries showing the flow of costs through the two processing departments during April

Answer 1

No.	Account Titles and Explanation	Debit	Credit
1	Work in process-Cooking department	779000
	Raw Materials inventory		332000
	Factory wages payable		258000
	Manufacturing overhead		189000
	(To record materials, labor, and overhead charged to production)
2	Work in process-Molding department	763000
	Work in process-Cooking department		763000
	(To record transfer from Cooking to Molding department)
3	Work in process-Molding department	216000
	Factory wages payable		122000
	Manufacturing overhead		94000
	(To record labor, and overhead charged to production)
4	Finished goods inventory	985000
	Work in process-Molding department		985000
	(To record units completed and transferred out)