Question

Quality Brick Company produces bricks in two processing departments—Molding and Firing. Information relating to the company’s operations in March follows:

a.	Raw materials were issued for use in production: Molding Department, $23,000; and Firing Department, $8,000.
b.	Direct labor costs were 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.
e.	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 $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.

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.)

Note: Enter debits before credits.

	Transaction General Journal Debit Credit a.

1. Record issuance of raw materials for use in production.

2. Record direct labor costs incurred.

3. Record entry to apply manufacturing overhead.

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 bricks warehouse.

6. Record cost of goods sold.

Answer 1

	General Journal	Debit	Credit
a	Work in process-Molding Department	23000
	Work in process-Firing Department	8000
	Raw materials		31000
b	Work in process-Molding Department	12000
	Work in process-Firing Department	7000
	Wages payable		19000
c	Work in process-Molding Department	25000
	Work in process-Firing Department	37000
	Manufacturing overhead		62000
d	Work in process-Firing Department	57000
	Work in process-Molding Department		57000
e	Finished goods	103000
	Work in process-Firing Department		103000
f	Cost of goods sold	101000
	Finished goods		101000