Question

Check my Exercise 4-7 Process Costing Journal Entries (L04-1] 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 758,000 Work in Process-Cooking Balance 4/1 9,000 Transferred out Direct materials 328,000 Direct labor 256,000 Overhead 189,000 Work in Process-Molding Balance 4/1 20,000 Transferred out Transferred in 758,000 Direct labor 118,000 Overhead 87,000 975,000 Required: Prepare journal entries showing the flow of costs through the two processing departments during April. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Answer 1

Solution:

Journal entries

Record issuance of raw materials:

No.	Transactions	General	Debit	Credit
1.	1.	Work process - cooking	328,000
		Raw materials inventory		328,000
2.	2.	Work process - Cooking	256,000
		Work in process - Molding	118,000
		Salaries and wages payable		374,000
3.	3.	Work in process - Cooking	189,000
		Work in process - Molding	87,000
		Manufacturing overhead		276,000
4.	4.	Work in process - Molding	758,000
		Work in process - Cooking		758,000
5.	5.	Finished goods	975,000
		Work in process - Molding		975,000