Quality Brick Company produces bricks in two processing departments—Molding and
ID: 2416114 • 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: a. Raw materials were issued for use in production: Molding Department, $28,700; and Firing Department, $4,300. b. Direct labor costs were incurred: Molding Department, $19,500; and Firing Department, $5,400. c. Manufacturing overhead was applied: Molding Department, $22,100; and Firing Department, $39,300. d. 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 $67,400. e. 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 $108,900. f. Finished bricks were sold to customers. According to the company's process costing system, the cost of the finished bricks sold was $105,900. Required: Prepare journal entries to record items (a) through (f) above. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Explanation / Answer
S no. Account title Debit credit a Work in process- Molding 28700 Work in process - Firing 4300 Raw material Inventory 33,000 [raw material issued for production] b Work in process- molding 19500 Work in process -firing 5400 Factory labor payable 24900 [factory cost incurred] c Work in process -Molding 22100 Work in process- firing 39300 Manufacturing overhead 61400 [being overhead applied] d Work in process -molding 67400 work in process -fired 67400 [being transfered made ] e Finished goods inventory 108900 Work in process -firing 108900 [being finished goods transfered from firing ] f Cost of goods sold 105900 Finished goods inventory 105900 [being cost of sales recorded ]