Question

Entries for Flow of Factory Costs for Process Cost System

Radford Inc. manufactures a sugar product by a continuous process, involving three production departments—Refining, Sifting, and Packing. Assume that records indicate that direct materials, direct labor, and applied factory overhead for the first department, Refining, were $285,500, $99,900, and $65,700, respectively. Also, work in process in the Refining Department at the beginning of the period totaled $16,000, and work in process at the end of the period totaled $19,700.

a. Journalize the entries to record the flow of costs into the Refining Department during the period for (1) direct materials, (2) direct labor, and (3) factory overhead. If an amount box does not require an entry, leave it blank.

1.
2.
3.

b. Journalize the entry to record the transfer of production costs to the second department, Sifting. If an amount box does not require an entry, leave it blank.

Answer 1

a. Journalize the entries to record the flow of costs into the Refining Department during the period for (1) direct materials, (2) direct labor, and (3) factory overhead. If an amount box does not require an entry, leave it blank.

1.	Work in process-refining department	285500
	Direct material		285500
2.	Work in process-Refining department	99900
	Wages payable		9900
3.	Work in process-Refining department	65700
	Manufacturing overhead		65700

b. Journalize the entry to record the transfer of production costs to the second department, Sifting. If an amount box does not require an entry, leave it blank.

1	Work in process-Sifting department (16000+285500+99900+65700-19700)	447400
	Work in process-Refining department		447400