Question

Harrelson Company manufactures pizza sauce through two production departments: Cooking and Canning. In each process, materials and conversion costs are incurred evenly throughout the process. For the month of April, the work in process accounts show the following debits. Cooking Canning Beginning work in process $0 $4,840 9,100 Materials 24,500 Labor 7,560 8,830 32,000 Overhead 28,400 Costs transferred in 55,100

Answer 1

Apr 30 Work in process - cooking Dr 24500

Work in process - canning Dr 9100

To Materials Inentory 33600

(to record material used)

Apr 30 Work in process - cooking Dr 8830

Work in process - canning Dr 7560

To Wages Payable/ Wages 16390

( To assign factory labor to production)

Apr 30 Work in process - cooking Dr 32000

Work in process - canning Dr 28400

To Factory Overhead 60400

( To assign factory labor to production)

Apr 30   Work in process - canning Dr 55100

To Work in process - cooking (note1) 55100

(Being cost transferred in to canning- work in process)

Note 1: It is not clearly mentioned the account from which cost is transferred in to canning- work in process. Hence it is assumed that it is transferred from cooking- work in process since its the only other ' WIP'. Additionally canning comes after cooking the product.