Quality Brick Company produces bricks in two processing departments—Molding and
ID: 2411985 • Letter: Q
Question
Quality Brick Company produces bricks in two processing departments—Molding and Firing. Information relating to the company’s operations in March follows:
Raw materials were issued for use in production: Molding Department, $23,000; and Firing Department, $8,000.
Direct labor costs were incurred: Molding Department, $12,000; and Firing Department, $7,000.
Manufacturing overhead was applied: Molding Department, $25,000; and Firing Department, $37,000.
Unfired, molded bricks were transferred from the Molding Department to the Firing Department. According to the company's process costing system, the cost of the unfired, molded bricks was $57,000.
Finished bricks were transferred from the Firing Department to the finished goods warehouse. According to the company's process costing system, the cost of the finished bricks was $103,000.
Finished bricks were sold to customers. According to the company's process costing system, the cost of the finished bricks sold was $101,000.
Prepare journal entries to record items (a)-(f) above. (if no entry is required for a transaction/event. select "no journal entry required)
-record issuance of raw materials for use in production
-record direct labor costs incurred
-record entry to apply manufacturing overhead
-record transfer of unfired, molded bricks from the molding department to the firing deparment
-record transfer of finished bricks from the fifing department to the finished brick warehouse
-record COGS
Quality Brick Company produces bricks in two processing departments—Molding and Firing. Information relating to the company’s operations in March follows:
Explanation / Answer
General Journal Debit Credit a. work in process -molding Department 23,000 work in process - firing department 8,000 Raw materials 31,000 b. work in process -molding Department 12,000 work in process - firing department 7,000 Wages payable 19,000 c. work in process -molding Department 25,000 work in process - firing department 37,000 Manufacturing overhead 62,000 d. work in process-firing department 57,000 work in process-molding department 57,000 e. finished goods inventory 103,000 work in process-firing department 103,000 f. Cost of goods sold 101,000 finished goods inventory 101,000