Cost of Production and Journal Entries Franklin Paper Company manufactures newsp
ID: 2372654 • Letter: C
Question
Cost of Production and Journal
Entries
Franklin Paper Company manufactures
newsprint. The product is manufactured in two departments, Papermaking and
Converting. Pulp is first placed into a vessel at the beginning of papermaking
production. The following information concerns production in the Papermaking
Department for January.
Account
Work in Process%u2014Papermaking Department
Account
No.
Date
Item
Debit
Credit
Balance
Debit
Credit
Jan.
1
Bal., 4,900 units, 10% completed
16,758
31
Direct materials, 26,100 units
49,590
66,348
31
Direct labor
14,840
81,188
31
Factory overhead
8,352
89,540
31
Goods transferred, 29,100 units
?
?
31
Bal., 1,900 units, 20% completed
?
a. Prepare the January journal entry
for the Papermaking Department for the completed production transferred to the
Converting Department.
B. Determine the Work in Process%u2014Papermaking Department January 31 balance.
$
Explanation / Answer
Franklin Paper Company manufactures newsprint. The product is manufactured in two departments, Papermaking and Converting. Pulp is first placed into a vessel at the beginning of papermaking production. The following information concerns production in the Papermaking Department for January.
a. Prepare the following January journal entries for the Papermaking Department:
1. The materials charged to production.
2. The conversion costs charged to production.
3. The completed production transferred to the Converting Department.
b. Determine the Work in Process%u2014Papermaking Department January 31balance.