Question

Quality Brick Company produces bricks in two processing departments—Molding and Firing. Information relating to the company’s operations in March follows:

a. Raw materials used in production: Molding Department, $28,600; and Firing Department, $5,800.
b. Direct labor costs incurred: Molding Department, $19,100; and Firing Department, $5,300.
c. Manufacturing overhead was applied: Molding Department, $25,200; and Firing Department, $35,400.
d. 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 $65,400.
e. 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 $108,200.
f. Finished bricks were sold to customers. According to the company’s process costing system, the cost of the finished bricks sold was $104,900.
Required:
Prepare journal entries to record items (a) through (f) above. (If no entry is required for a transaction/event,

Answer 1

a. Raw materials used in production: Molding Department, $28,600; and Firing Department, $5,800.

Dr Work in process: Molding department 28,600

Dr Work in process: Firing department 5,800

Cr Materials inventory 34,400

b. Direct labor costs incurred: Molding Department, $19,100; and Firing Department, $5,300.

Dr Work in process: Molding department 19,100

Dr Work in process: Firing department 5,300

Cr Wages payable 24,400

c. Manufacturing overhead was applied: Molding Department, $25,200; and Firing Department, $35,400.

Dr Work in process: Molding department 25,200

Dr Work in process: Firing department 35,400

Cr Manufacturing overhead 60,600

d. 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 $65,400.

Dr Work in process: Firing department 65,400

Cr Work in process: Molding department 65,400

e. 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 $108,200.

Dr Finished goods inventory 108,200

Cr Work in process: Firing department 108,200

f. Finished bricks were sold to customers. According to the company’s process costing system, the cost of the finished bricks sold was $104,900.

Dr Cost of goods sold 104,900

Cr Finished goods inventory 104,900