Entries for Flow of Factory Costs for Process Cost System Sweeties, Inc., manufa
ID: 2335484 • Letter: E
Question
Entries for Flow of Factory Costs for Process Cost System
Sweeties, Inc., manufactures a sugar product by a continuous process, involving three production departments—Refining, Sifting, and Packing. Assume that records indicate that direct materials, direct labor, and applied factory overhead for the first department, Refining, were $643,900, $225,400, and $148,100, respectively. Also, work in process in the Refining Department at the beginning of the period totaled $36,100, and work in process at the end of the period totaled $44,400.
a. Journalize the entries to record the flow of costs into the Refining Department during the period for (1) direct materials, (2) direct labor, and (3) factory overhead.
b. Journalize the entry to record the transfer of production costs to the second department, Sifting.
1. 2. 3.Explanation / Answer
Solution: a. Direct materials Sr. No. General Journal Debit Credit 1. Work in Process-Refining Department 643,900 Materials 643,900 [Being issuance of materials recorded ] 2. Work in ProcessRefining Department 225,400 Wages Payable 225,400 [Being payroll cost of labor recorded ] 3. Work in Process-Refining Department 148,100 Factory Overhead-Refining Department 148,100 [Being factory Overhead applied recorded] b. Sr. No. General Journal Debit Credit Work in Process-Sifting Department 1,009,100 Work in Process-Refining Department 1,009,100 [Being work in process transferred from refining to sifting department recorded] work in process in the Refining Department beginning 36,100 Add: During the period Materials 643,900 Labor 225,400 Factory overhead 148,100 Less: End of the period balance ($44,400) Amount transfer to sifting department 1,009,100 Please feel free to ask if anything about above solution in comment section of the question.
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