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Cost of Production and Journal Entries

Lighthouse Paper Company manufactures newsprint. The product is manufactured in two departments, Papermaking and Converting. Pulp is first placed into a vessel at the beginning of papermaking production. The following information concerns production in the Papermaking Department for March:

Account Work in Process$$Papermaking DepartmentAccount No$.$DateItemDebitCreditBalanceDebitCreditMar$\mathrm{.}1$Bal., $4,500$ units, $70\%$ completed$3,51031$Direct materials, $24,000$ units$31,20034,71031$Direct labor$9,60044,31031$Factory overhead$5,40649,71631$Goods transferred, $26,800$ units$??31$Bal., $1,700$ units, $80\%$ completed$?$

Question Content Area

a$1.$Prepare the March journal entry for the Papermaking Department for the materials charged to production. If an amount box does not require an entry, leave it blank.

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Factory Overhead$-$Papermaking DepartmentFinished GoodsMaterials$-$PulpWork in Process$-$Converting DepartmentWork in Process$-$Papermaking Department

Factory Overhead$-$Papermaking DepartmentFinished GoodsMaterials$-$PulpWork in Process$-$Converting DepartmentWork in Process$-$Papermaking Department

Question Content Area

a$2.$Prepare the March journal entry for the Papermaking Department for the conversion costs charged to production. If an amount box does not require an entry, leave it blank.

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Factory OverheadMaterials$-$PulpWages ExpenseWork in Process$-$Converting DepartmentWork in Process$-$Papermaking Department

CashCost of Goods SoldWages PayableWork in Process$-$Converting DepartmentWork in Process$-$Papermaking Department

Accounts PayableCashFactory OverheadWork in Process$-$Converting DepartmentWork in Process$-$Papermaking Department

Question Content Area

a$3.$Prepare the March journal entry for the Papermaking Department for the completed production transferred to the Converting Department. If an amount box does not require an entry, leave it blank. If required, round your interim calculations to two decimal places and your final answer to the nearest dollar.

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CashFinished GoodsMaterials$-$PulpWork in Process$-$Converting DepartmentWork in Process$-$Papermaking Department

CashFinished GoodsMaterials$-$PulpWork in Process$-$Converting DepartmentWork in Process$-$Papermaking Department

Question Content Area

b$.$Determine the Work in Process$$Papermaking Department March $31$ balance. If required, round your interim calculations to two decimal places and your final answer to the nearest dollar.

$fill in the blank $54$dbbb$02$b$001016\_1$

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