Question

Bayas Corporation uses process costing. A number of transactions that occurred in June are listed below.

1. (1) Raw materials that cost $40,400 are withdrawn from the storeroom for use in the Mixing Department. All of these raw materials are classified as direct materials.

2. (2) Direct labor costs of $16,700 are incurred, but not yet paid, in the Mixing Department.

3. (3) Manufacturing overhead of $46,300 is applied in the Mixing Department using the department’s predetermined overhead rate.

4. (4) Units with a carrying cost of $88,200 finish processing in the Mixing Department and are transferred to the Drying Department for further processing.

5. (5) Units with a carrying cost of $111,900 finish processing in the Drying Department, the final step in the production process, and are transferred to the finished goods warehouse.

6. (6) Finished goods with a carrying cost of $98,800 are sold.

Bayas Corporation uses process costing. A number of transactions that occurred in June are listed below. (1) Raw materials that cost $40,400 are withdrawn from the storeroom for use in the Mixing Department. All of these raw materials are classified as direct materials. (2) Direct labor costs of $16,700 are incurred, but not yet paid, in the Mixing Department. (3) Manufacturing overhead of $46,300 is applied in the Mixing Department using the department's predetermined overhead rate. (4) Units with a carrying cost of $88,200 finish processing in the Mixing Department and are transferred to the Drying Department for further processing. (5) Units with a carrying cost of $111,900 finish processing in the Drying Department, the final step in the production process, and are transferred to the finished goods warehouse. (6) Finished goods with a carrying cost of $98,800 are sold. Required: Prepare journal entries for each of the transactions listed above. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 4 5 6 Raw materials that cost $40,400 are withdrawn from the storeroom for use in the Mixing Department. All of these raw materials are classified as direct materials. Note: Enter debits before credits.

Answer 1

Journal entry

No	General Journal	Debit	Credit
1	Work in process-Mixing	40400
	Raw material		40400
2	Work in process-Mixing	16700
	Wages payable		16700
3	Work in process-Mixing	46300
	Manufacturing overhead		46300
4	Work in process-Drying	88200
	Work in process-Mixing		88200
5	Finished goods	111900
	Work in process-Drying		111900
6	Cost of goods sold	98800
	Finished goods		98800