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
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