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 $386,000, $145,000, and $98,800, respectively. Also, work in process in the Refining Department at the beginning of the period totaled $29,600, and work in process at the end of the period totaled $28,400. 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.*

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	$386,000
	Materials		$386,000
	(To record usage of direct material)
2	Work-in process - Refining Department	$145,000
	Wages Payable		$145,000
	(To record usage of direct labor)
3	Work-in process - Refining Department	$98,800
	Factories Overhead - Refining Department		$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    [$29,600 + ($386,000 + $145,000 + $98,800) - $28,400]		$631,000
Work-in process - Refining Department			$631,000
(To transfer costs to the second department)