Question

Bayas Corporation uses process costing. A number of transactions that occurred in June are listed below.

1. (1) Raw materials that cost $40,300 are withdrawn from the storeroom for use in the Mixing Department. All of these raw materials are classified as direct materials.

2. (2) Direct labor costs of $16,600 are incurred, but not yet paid, in the Mixing Department.

3. (3) Manufacturing overhead of $46,200 is applied in the Mixing Department using the department’s predetermined overhead rate.

4. (4) Units with a carrying cost of $88,100 finish processing in the Mixing Department and are transferred to the Drying Department for further processing.

5. (5) Units with a carrying cost of $111,800 finish processing in the Drying Department, the final step in the production process, and are transferred to the finished goods warehouse.

6. (6) Finished goods with a carrying cost of $98,700 are sold. 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.)

Answer 1

Answer:

Event	Description	Debit $	Credit $
1	Work in progress-Mixing Department	40,300
	Raw Material Inventory		40,300
	(To record the Material Issued to production)
2	Work in progress-Mixing Department	16,600
	Salary and wages payable		16,600
	(To record the direct labor cost)
3	Work in progress-Mixing Department	46,200
	Manufacturing Overhead		46,200
	(To record the manufacturing overhead cost)
4	Work in progress-Dying Department	88,100
	Work in progress-Mixing Department		88,100
	(To record transfer form Mixing to Dying department)
5	Finished Goods inventory	1,11,800
	Work in progress-Dying Department		1,11,800
6	Cost of good sold	98,700
	Finished Goods inventory		98,700
	(To record the cost of goods sold)