Question

Sweeties, 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 $360,000, $147,000, and $96,400, respectively. Also, work in process in the Refining Department at the beginning of the period totaled $32,000, and work in process at the end of the period totaled $28,200.

Required:

a.	(1) On September 30, journalize the entry to record the flow of costs into the Refining Department during the period for direct materials.* (2) On September 30, journalize the entry to record the flow of costs into the Refining Department during the period for direct labor.* (3) On September 30, journalize the entry to record the flow of costs into the Refining Department during the period for factory overhead.*
b.	On September 30, journalize the entry to record the transfer of production costs to the second department, Sifting.*
	*Refer to the Chart of Accounts for exact wording of account titles.

(1). On September 30, journalize the entry to record the flow of costs into the Refining Department during the period for direct materials. Refer to the Chart of Accounts for exact wording of account titles.

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JOURNAL

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
1
2

Solution

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
1
2

Points:

a(2). On September 30, journalize the entry to record the flow of costs into the Refining Department during the period for direct labor. Refer to the Chart of Accounts for exact wording of account titles.

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JOURNAL

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
1
2

Solution

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
1
2

Points:

a(3). On September 30, journalize the entry to record the flow of costs into the Refining Department during the period for factory overhead. Refer to the Chart of Accounts for exact wording of account titles.

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JOURNAL

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
1
2

Solution

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
1
2

Points:

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b. On September 30, journalize the entry to record the transfer of production costs to the second department, Sifting. Refer to the Chart of Accounts for exact wording of account titles.

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JOURNAL

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
1
2

Answer 1

Sweeties, Inc. Requirement a: Journal Enteries Date Particulars Debit in $ Credit in $ Sep-30 Work in process- Refining Dept a/c Dr. 360000 To Materials 360000 (to record the flow of costs into the Refining Department for materials) 147000 Sep-30 Work in process- Refining Dept a/c Dr. 147000 To Wages Payable (to record the flow of costs into the Refining Department for direct labour) 96400 Sep-30 Work in process-Refining Dept a/c Dr. 96400 To Factory Overhead-Refining Dept (to record the flow of costs into the Refining Department for factory overhead) Requirement b: 607200 Sep-30 Work in process-Sifting Dept a/c Dr. 607200 To Work in process-Refining Dept. (to record the transfer of production costs to the second department, Sifting) (32,000+360,000+147,000+96,400) -(28,200)