Question

Exercise 16-2 Harrelson Company manufactures pizza sauce through two production departments: Cooking and Canning. In each process, materials and conversion costs are incurred evenly throughout the process. For the month of April, the work in process accounts show the following debits. Beginning work in process Materials Labor Overhead Costs transferred in Cooking $0 22,500 8,840 32,200 Canning $4,200 11,100 7,770 27,400 55,400 Journalize the April transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Answer 1

Journal entries
S.no.	Accounts title and explanation			Debit $	Credit $
a.	Work in process-Cooking			22,500
	Work in process- Canning			11,100
	Raw material inventory				33,600
	(for material used)
b.	Work in process-Cooking			8,840
	Work in process- Canning			7,770
	Factory wages					16,610
	(for labour cost incurred)
c.	Work in process-Cooking			32,200
	Work in process- Canning			27,400
	Manufacturing overheads				59,600
	(for overheads applied)
d.	Work in process- Canning			55,400
	Work in process- Cooking				55,400
	(for completed goods of previous process transferred)