Question

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

1. Raw materials used in production: Molding Department, $28,800; and Firing Department, $5,300.
2. Direct labor costs incurred: Molding Department, $16,900; and Firing Department, $4,000.
3. Manufacturing overhead was applied: Molding Department, $22,600; and Firing Department, $38,000.
4. 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 $69,600.
5. 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 $108,700.
6. Finished bricks were sold to customers. According to the company’s process costing system, the cost of the finished bricks sold was $104,600.

JOURNAL ENTRY QUESTION

Answer 1

Transaction	General Journal	Debit	Credit
a	Work In Process – Molding department	$28,800
	Work In Process – Firing department	$5,300
	Raw materials           [Total raw materials used = $28,800 + $5,300]		$34,100
	(To record Direct materials used)
b	Work In Process – Molding department	$16,900
	Work In Process – Firing department	$4,000
	Salaries and wages payable    [Total direct labor cost = $16,900 + $4,000]		$20,900
	(To record Direct Labor cost)
c	Work In Process – Molding department	$22,600
	Work In Process – Firing department	$38,000
	Manufacturing Overhead            [Total = $22,600 + $38,000]		$60,600
	(To record overhead applied to production)
d	Work In Process – Firing department	$69,600
	Work In Process – Molding department		$69,600
	(To record transfer of inventory from molding dept. to Firing dept.)
e	Finished Goods	$108,700
	Work In Process – Firing department		$108,700
	(To record completion of finished goods)
f	Cost of Goods Sold	$104,600
	Finished Goods		$104,600
	(To record cost of goods sold)