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, $28,800; and Firing Department, $5,300.
2. Direct labor costs incurred: Molding Department, $19,500; and Firing Department, $5,600.
3. Manufacturing overhead was applied: Molding Department, $23,400; and Firing Department, $39,900.
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 $65,500.
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 $107,200.
6. Finished bricks were sold to customers. According to the company’s process costing system, the cost of the finished bricks sold was $103,600.

Required:

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

Answer 1

solution: Credit General Journal a Work in process-Molding Dept. Work in process-Firing Dept. Raw materials Debit 28800 5300 34100 b Work in process-Molding Dept. Work in process-Firing Dept. Wages payable 19500 5600 25100 c Work in process-Molding Dept. Work in process-Firing Dept. Manufacturing overhead 23400 39900 63300 65500 d Work in process-Molding Dept. Work in process-Firing Dept. 65500 107200 e Finished goods Work in process-Firing Dept. 107200 103600 f Cost of goods sold Cost of goods sold 103600

Answer 2

d. Work in process-Firing Dept. 

    Work in process-Molding Dept.

f. Cost of goods sold

    Finished goods