Quality Brick Company produces bricks in two processing departments-Molding and
ID: 2563367 • 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 used in production: Molding Department, $29,600, and Firing Department, $4,600 b. Direct labor costs incurred: Molding Department, $16,600; and Firing Department, $4,600 C. Manufacturing overhead was applied: Molding Department, $23,700, and Firing Department, $39,400. 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 $69,000. 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 $107,900 . Finished bricks were sold to customers. According to the company's process costing system, the cost of the finished bricks sold was $103,000 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.) View transaction list Journal entry worksheet Record issuance of raw materials for use in production. Note: Enter debits before credits. Transaction General Journal Debit Credit a. Record entry Clear entry View general journalExplanation / Answer
Solution:
Journal Entries
Transaction
General Journal
Debit
Credit
(a)
Work in Process - Molding Department
$29,600
Work in Process - Fining Department
$4,600
Raw Materials Inventory
$34,200
(b)
Work in Process - Molding Department
$16,600
Work in Process - Fining Department
$4,600
Wages Payable
$21,200
(c )
Work in Process - Molding Department
$23,700
Work in Process - Fining Department
$39,400
Manufacturing Overheads
$63,100
(d)
Work in Process - Fining Department
$69,000
Work in Process - Molding Department
$69,000
(e)
Finished Goods Inventory
$107,900
Work in Process - Fining Department
$107,900
(f)
Cost of Goods Sold
$103,000
Finished Goods Inventory
$103,000
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Transaction
General Journal
Debit
Credit
(a)
Work in Process - Molding Department
$29,600
Work in Process - Fining Department
$4,600
Raw Materials Inventory
$34,200
(b)
Work in Process - Molding Department
$16,600
Work in Process - Fining Department
$4,600
Wages Payable
$21,200
(c )
Work in Process - Molding Department
$23,700
Work in Process - Fining Department
$39,400
Manufacturing Overheads
$63,100
(d)
Work in Process - Fining Department
$69,000
Work in Process - Molding Department
$69,000
(e)
Finished Goods Inventory
$107,900
Work in Process - Fining Department
$107,900
(f)
Cost of Goods Sold
$103,000
Finished Goods Inventory
$103,000