Question

cogs and sales table are same as other tables. please explain this for me. i will leave thumbs up. thank you so much for your help.

Is dVallable for the Refining Department for March March 1 balance Work in Process-Refining Department 33,400 Completed and transferred to Blending 141,609 64,200 490.000 Materials Direct labor Overhead March 31 balance The March 1 work in process inventory in the Refining Department consists of the following elements: materials, $7,900; direct labor, $4,900; and overhead, $20,600. Costs incurred during March in the Blending Department were: materials used, $45,000, direct labor, $17.200; and overhead cost applied to production, $111,000. Required: 1. Prepare journal entries to record the costs incurred in both the Refining Department and Blending Department during March Key your entries to the items (a) through (g) below. a. Raw materials used in production b. Direct labor costs incurred. c. Manufacturing overhead costs incurred for the entire factory, $706,000. (Credit Accounts Payable.) d. Manufacturing overhead was applied to production using a predetermined overhead rate. e. Units that were complete with respect to processing in the Refining Department were transferred to the Blending Department, $682,000. f. Units that were complete with respect to processing in the Blending Department were transferred to Finished Goods, $710,000. g. Completed units were sold on account, $1,470,000. The Cost of Goods Sold was $680,000. 2. Post the journal entries from (1) above to T-accounts. The following account balances existed at the beginning of March. (The beginning balance in the Refining Department's Work in Process is given in the T-account shown above.) Raw materials Work in process-Blending Department Finished goods $ 211,600 $ 48,000 $ 26,000

Answer 1

1.

No.	Transaction	General journal	Debit	Credit
1	a	Work in process- refining department	141,600
		Work in process-Blending department	45,000
		Raw materials		186,600

Work in process blending department= as given in direct materials of blending department i.e. 45,000

No.	Transaction	General journal	Debit	Credit
	b	Work in process- refining department	64,200
		Work in process- blending department	17,200
		Salaries and wages payable		81,400

To record direct labor expense, WIP of both the departments will be debited with respective amounts and salaries and wages payable account will be credited.

No.	Transaction	General journal	Debit	Credit
	c	Manufacturing overhead	706,000
		Accounts payable		706,000

Manufacturing overhead will be debited and accounts payable will be credited.

No.	Transaction	General journal	Debit	Credit
	d	Work in process- refining department	490,000
		Work in process- blending department	111,000
		Manufacturing overhead		601,000

No.	Transaction	General journal	Debit	Credit
	e	Work in process- blending department	682,000
		Work in process- refining department		682,000

To record the transfer of units, the receiving department which is blending department WIP  will be credited and refining department WIP will be credited.

No.	Transaction	General journal	Debit	Credit
	f	Finished goods	710,000
		Work in process- blending department		710,000

To record transfer of units to finished goods inventory, Finished goods account will be debited and WIP of blending department will be credited.

No.	Transaction	General journal	Debit	Credit
	g1	Accounts receivable	1,470,000
		Sales		1,470,000

No.	Transaction	General journal	Debit	Credit
	g2	Cost of goods sold	680,000
		Finished goods		680,000

2. Posting into T accounts:

Accounts receivable

Beg. Bal.
Sales/ g.	1,470,000
Ending bal.	1,470,000

Raw materials

Beg. Bal.	211,600	a.	186,600
Ending bal.	25,000

Work in process- Refining department

Beg. bal.	33,400	e	682,000
a.	141,600
b.	64,200
d	490,000
Ending bal.	47,200

Work in process- blending department

Beg. bal.	48,000	f.	710,000
a	45,000
b	17,200
d	111,000
e	682,000
Ending bal.	193,200

Finished goods

Beg bal	26,000	g	680,000
f	710,000
Ending bal.	56,000

Manufacturing overhead

Beg. bal
c	706,000	d	601,000
Ending bal.	105,000

Accounts payable

Beg. bal		c	706,000
Ending bal.			706,000

Salaries and wages payable

Beg, bal		b.	81,400
Ending bal.			81,400

Sales

Beg. bal.		g.	1,470,000
Ending bal.			1,470,000

Cost of goods sold

Beg. bal
g	680,000
Ending bal.	680,000