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Write the journal entries for the following: 1. Raw materials were issued for us

ID: 2453984 • Letter: W

Question

Write the journal entries for the following:

1. Raw materials were issued for use in production: Molding Department $30,000; and Firing Department $5,000

2. Direct labor costs were incurred: Molding Department, $20,000; and Firing Department, $5,000.

3. Manufacturing overhead was applied: Molding Department, $25,000; and Firing Department $35,000

4. 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 $70,000

5. 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 $110,000

Explanation / Answer

1. Raw materials were issued for use in production: Molding Department $30,000; and Firing Department $5,000

Work in Process—Molding Department........................................            $30,000

            Work in Process—Firing Department................................              $5,000

                     Raw Materials...........................................................                                    $35,000

2. Direct labor costs were incurred: Molding Department, $20,000; and Firing Department, $5,000.

Work in Process—Molding Department........................................            $20,000

            Work in Process—Firing Department................................              $5,000

                     Wages Payable..........................................................                                    $25,000

3. Manufacturing overhead was applied: Molding Department, $25,000; and Firing Department $35,000

Work in Process—Molding Department........................................            $25,000

            Work in Process—Firing Department................................            $35,000

                     Manufacturing Overhead..........................................                                    $60,000

4. 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 $70,000

Work in Process—Firing Department............................................            $70,000

                     Work in Process—Molding Department...................                                    $70,000

5. 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 $110,000

Finished Goods................................................................................          $110,000

                     Work in Process—Firing Department.......................                                  $110,000