Question

Radford 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 $371,000, $142,000, and $98,400, respectively. Also, work in process in the Refining Department at the beginning of the period totaled $29,200, and work in process at the end of the period totaled $28,400. Required:

a.
(1) On September 30, journalize the entry to record the flow of costs into the Refining Department during the period for direct materials
(2) On September 30, journalize the entry to record the flow of costs into the Refining Department during the period for direct labor
(3) On September 30, journalize the entry to record the flow of costs into the Refining Department during the period for factory overhead
b. On September 30, journalize the entry to record the transfer of production costs to the second department, Sifting
Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for spaces or journal explanations. Every line on a journal page is used for debit or credit entries. Do not add explanations or skip a line between journal entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.

Answer 1

A.

1. Dr Work-in process - Refining Department $371,000

Cr Materials $371,000

2. Dr Work-in process - Refining Department $142,000

Cr Wages Payable $142,000

3. Dr Work-in process - Refining Department $98,400

Cr Factories Overhead - Refining Department $98,400

B. Dr Work-in process - Sifting Department $612,200

Cr Work-in process - Refining Department $612,200

Step-by-step explanation:

A. Preparation of the journalentry to record the flow of costs into the Refining Department during the period for factory overhead

1. Dr Work-in process - Refining Department $371,000

Cr Materials $371,000

(Being To record usage of direct material)

2. Dr Work-in process - Refining Department $142,000

Cr Wages Payable $142,000

(Being To record usage of direct labor)

3. Dr Work-in process - Refining Department $98,400

Cr Factories Overhead - Refining Department $98,400

(Being To record applied manufacturing overhead)

Preparation of the journal the entry to record the transfer of production costs to the second department

Dr Work-in process - Sifting Department $612,200

[$29,200 + ($371,000 + $142,000 + $98,400) - $28,400]

Cr Work-in process - Refining Department $612,200

(Being To transfer costs to the second department)