Question

Bayas Corporation uses process costing. A number of transactions that occurred in June are listed below. (1) Raw materials that cost $41,800 are withdrawn from the storeroom for use in the Mixing Department.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 $18,100 are incurred, but not yet paid, in the Mixing Department. (3) Manufacturing overhead of $47,700 is applied in the Mixing Department using the department's predetermined overhead rate. (4) Units with a carrying cost of $89,600 finish processing in the Mixing Department and are transferred to the Drying Department for further processing. (5) Units with a carrying cost of $113,300 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 $100,200 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 Raw materials that cost $41,800 are withdrawn from the storeroom for use in the Mixing Department.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. General Journal Debit Credit Transaction (1)

Answer 1

1) Work in progress inventory A/c(mixing department) Dr $41800

To Raw material inventory A/c. $41800

(Being Raw materials that cost $41,700 are withdrawn from the storeroom for use in the Mixing Department. All of these raw materials are classified as direct materials.)

2)Work in progress inventory a/c (mixing department) Dr $18100

To Factory Payroll Payable. $18100

(Being Direct labour used in production but not paid)

3) Work in progress inventory a/c (mixing Department ) dr. $47700

To Manufacturing Overhead. $47700

(Being manufacturing overhead applied using predetermined overhead rate)

4)Work in progress Inventory (Dying department) A/c dr. $89600

To Work in progress (mixing department) $89600

(Being Units with a carrying cost of $87,900 finish processing in the Mixing Department and are transferred to the Drying Department for further processing)

5) Finished Goods Account Dr $113300

To Work in progress inventory (dying department) a/c. $ 113300

( being units finished processing transferred to finished goods warehouse)

6)Accounts receivable $100200

To Sales $100200

  

Cogs $100200

To Finished goods $100200

(Being finished goods sold)