Question

Entries for Flow of Factory Costs for Process Cost System Radford Inc, manufactures a sugar product by a continuous process, involving three production departments-Refining, Sifting, and Packing. Assume that records indicate that direct materials, direct labor, and applied factory overhead for the first department, Refining, were $458,200, $160,400, and $105,400, respectively. Also, work in process in the Refining Department at the beginning of the period totaled $25,700, and work in process at the end of the period totaled $31,600. a. Journalize the entries to record the flow of costs into the Refining Department during the period for (1) direct materials, (2) direct labor, and (3) factory overhead. If an amount box does not require an entry, leave it blank. 1. 2. II II II 3. b. Journalize the entry to record the transfer of production costs to the second department, Sifting. If an amount box does not require an entry, leave it blank.

Answer 1

a. Entries to record the flow of costs into the refining department
S. No	Account Titles and Explanation	Debit	Credit
1	Work-in process - Refining Department              458200	$386,000
	Materials                                                                                         458200		$386,000
	(To record usage of direct material)
2	Work-in process - Refining Department            160400	$145,000
	Wages Payable                                                                                160400		$145,000
	(To record usage of direct labor)
3	Work-in process - Refining Department         105400	$98,800
	Factories Overhead - Refining Department                          105400		$98,800
	(To record applied manufacturing overhead)
b. Entry to record the transfer of production costs to the second department
Work-in process - Sifting Department [$25700 + ($458200 + $160400 + $105400) - $31600]              718100	$631,000
Work-in process - Refining Department                                                             718100		$631,000
(To transfer costs to the second department)