Question

Chapter 4 Exercises i Saved Quality Brick Company produces bricks in two processing departments-Molding and Firing. Information relating to the company's operations in March follows: 20 points Skipped a. Raw materials used in production: Molding Department, $23,000; and Firing Department, $8,000. b. Direct labor costs incurred: Molding Department, $12,000; and Firing Department, $7,000. c. Manufacturing overhead was applied: Molding Department, $25,000; and Firing Department, $37,000. d. 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 $57,000. shed 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 $103,000. f. Finished bricks were sold to customers. According to the company's process costing system, the cost of the finished bricks sold was $101,000. eBook Hint 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.) Print References View transaction list 1 Record issuance of raw materials for use in production. 2 Record direct labor costs incurred. 3 Record entry to apply manufacturing overhead. Credit 4 Record transfer of unfired, molded bricks from the Molding Department to the Firing Department. 5 Record transfer of finished bricks from the Firing Department to the finished goods warehouse. Note : = journal entry has been entered Record entry Clear entry View general journal

Answer 1

JOURNAL ENTRIES DATE ACCOUNT TITLE AND EXPLANATIONS Work-in-Process - Molding Department Work-in-Process - Firing Department Raw Material Inventory (Raw material issued for production process) DEBIT CREDIT A) 23,000 8,000 31,000 b) Work-in-Process - Molding Department Work-in-Process - Firing Department 12,000 7,000 Wages 19,000 (Labor cost transferred to work in process acount) |c) Work-in-Process - Molding Department Work-in-Process - Firing Department Manufacturing Overhead |(Overhead cost applied to work in process) 25,000 37,000 62,000 d) $ 57,000 Work-in-Process - Firing Department Work-in-Process - Molding Department 57,000 (work in process invetory transferred) %24 %24 %24 %24 %24

Finished goods Inventory Work-in-Process - Firing Department $ 1,07,000 1,07,000 (finished goods trnsfered to inventory) f) $ 1,01,000 Cost of Goods Sold Finished goods Inventory |(finished goods transferred to cost of goods sold) 1,01,000