Question

Entries for Materials Cost Flows in a Process Cost System The Hershey Company (HSY) manufactures chocolate confectionery products. The three largest raw materials are cocoa, sugar, and dehydrated milk. These raw materials first go into the Blending Department. The blended product is then sent to the Molding Department, where the bars of candy are formed. The candy is then sent to the Packing Department, where the bars are wrapped and boxed. The boxed candy is then sent to the distribution center, where it is eventually sold to food brokers and retailers. Show the accounts debited and credited for each of the following business events: a. Materials used by the Blending Department. b. Transfer of blended product to the Molding Department. c. Transfer of chocolate to the Packing Department. d. Transfer of boxed chocolate to the distribution center. e. Sale of boxed chocolate.

The drop-boxes for the left side are whether or not they are debited or credited.

And the drop-boxes on the right consist of the business events.

Answer 1

A). Materials used by the Blending Department

Debit Account	Work in process - Blending Department
Credit Account	Materials - Cocoa
Credit Account	Materials - Sugar
Credit Account	Materials - Dehydrated Milk

B). Transfer of blended product to the molding department.

Debit Account	Work in process- Molding
Credit Account	Work in process- Blending Department / Paking

C) .Transfer of Chocolate to the packing department

Debit Account	Work in Process Packing Department
Credit Account	Work in process - Molding Department

d) Transfer of Boxed Chocolate to the distribution Center.

Debit Account	Finished Goods
Credit Account	Work in Process Packing Department

E. ) Sale of Boxed Chocolate

Debit Account	Cost of Goods Sold
Credit Account	Finished Goods