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, $28,500; and Firing Department, $4,300.
2. Direct labor costs incurred: Molding Department, $20,000; and Firing Department, $4,000.
3. Manufacturing overhead was applied: Molding Department, $25,200; 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 $68,600.
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 $108,500.
6. Finished bricks were sold to customers. According to the company’s process costing system, the cost of the finished bricks sold was $105,700.

Required:

Prepare journal entries to record items (a) through (f) above. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Answer 1

Journal entry

No	General Journal	Debit	Credit
a	Work in process-Molding	28500
	Work in process-Firing	4300
	Raw material		32800
b	Work in process-Molding	20000
	Work in process-Firing	4000
	Wages payable		24000
c	Work in process-Molding	25200
	Work in process-Firing	39900
	Manufacturing overhead		65100
d	Work in process-Firing	68600
	Work in process-Molding		68600
e	Finished goods	108500
	Work in process-Firing		108500
f	Cost of goods sold	105700
	Finished goods		105700