Question

Entries for Flow of Factory Costs for Process Cost System

Sweeties, 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 $621,500, $217,500, and $142,900, respectively. Also, work in process in the Refining Department at the beginning of the period totaled $34,800, and work in process at the end of the period totaled $42,900.

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.

1.
2.
3.

b. Journalize the entry to record the transfer of production costs to the second department, Sifting.

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.

1.	Work in process-Refining	621500
	Direct material		621500
2.	Work in process-Refining	217500
	Direct labor		217500
3.	Work in process-Refining	142900
	manufacturing overhead		142900

b. Journalize the entry to record the transfer of production costs to the second department, Sifting.

1	Work in process-sifting (34800+621500+217500+142900-42900)	973800
	Work in process-Refining		973800