Quality Brick Company produces bricks in two processing departments--Molding and
ID: 2475954 • 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, $23,000; and Firing Department, $8,000. b. Direct labor costs were incurred: Molding Department, $12,000; and Firing Department, $7,000. c. Manufacturing overhead was applied: Molding Department, $25,000; and Firing Department, $37,000. 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 $57,000. 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 $103,000. f. Finished bricks were sold to customers. According to the company's process costing system, the cost of the finished bricks sold was $101,000. Required: Prepare journal entries to record items (a) through (f) above. Use the extra pages attached.Explanation / Answer
Date Particulars Debit Credit (a) Dr. Work in process- MoldingDepartment $23,000 Dr. Work in process-FiringDepartment $8,000 Cr. Raw materials $31,000 (b) Dr. Work in process- MoldingDepartment $12,000 Dr. Work in process-FiringDepartment $7,000 Cr. Wages payable $19,000 (c) Dr. Work in process- MoldingDepartment $25,000 Dr. Work in process-FiringDepartment $37,000 Cr. Manufacturing overhead $62,000 (d) Dr. Work in process-FiringDepartment $57,000 Cr. Work in process- MoldingDepartment $57,000 (e) Dr. Finished goods $103,000 Cr. Work in process-FiringDepartment $103,000 (f) Dr. Cost of goods sold $101,000 Cr. Finished goods $101,000