Quality Brick Company produces bricks in two processing departments—Molding and
ID: 2417586 • 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, $29,700; and Firing Department, $5,800. b. Direct labor costs were incurred: Molding Department, $17,300; and Firing Department, $5,400. c. Manufacturing overhead was applied: Molding Department, $25,700; and Firing Department, $35,800. 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 $67,600. 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 $104,000.
Explanation / Answer
a)WIP process-moulding (db) 29,700
WIP process-firing (db) 5800
Raw materials (cr) 35,500
b)WIP process-moulding (db) 17,300
WIP process-firing (db) 5400
direct labour (cr) 17300+5400=22,700
c)WIP process-moulding (db) 25,700
WIP process-firing (db) 35,800
maufacturing OH (cr) 25700+35800=61,500
d)WIP Firing (db) 67,600
WIp-mouldoing (cr) 67,600
e)FInished goods (db) 108,900
WIP firing (cr) 108,900
f)COGS (db) 104,000
Finished goods (cr) 104,000