Chocolaterie de Geneve, SA, is located in a French-speaking canton in Switzerlan

Question

Chocolaterie de Geneve, SA, is located in a French-speaking canton in Switzerland. The company makes chocolate truffles that are sold in popular embossed tins. The company has two processing departments—Cooking and Molding. In the Cooking Department, the raw ingredients for the truffles are mixed and then cooked in special candy-making vats. In the Molding Department, the melted chocolate and other ingredients from the Cooking Department are carefully poured into molds and decorative flourishes are applied by hand. After cooling, the truffles are packed for sale. The company uses a process costing system. The T-accounts below show the flow of costs through the two departments in April: Work in Process—Cooking Balance 4/1 8,000 Transferred out 160,000 Direct materials 42,000 Direct labor 50,000 Overhead 75,000 Work in Process—Molding Balance 4/1 4,000 Transferred out 240,000 Transferred in 160,000 Direct labor 36,000 Overhead 45,000 Required: Prepare journal entries showing the flow of costs through the two processing departments during April. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Explanation / Answer

journal entries showing the flow of costs through the two processing departments during April

A. Journal entry to record material, labour and overhead used in cooking process

Debit work in process - cooking 167000

Credit raw material 42000

Credit salaries and wages payable (labour) 50000

Credit overhead 75000

B.Journal entry to record labour and overhead used in moulding process

Debit work in process-moulding 81000

Credit salaries and wages payable 36000

Credit overhead 45000

C) journal entry regarding transfer the cost of partial completed units of cooking process to moulding process

Debit work in process - moulding 160000

Credit work in process - Cooking 160000

D. Journal entry for transferring the completed units cost from moulding process to finished goods inventory account

Debit finished goods 240000

Credit work in process - moulding 240000

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