Entries for Flow of Factory Costs for Process Cost SystemSweeties, Inc., manufactures a sugar...

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Accounting

Entries for Flow of Factory Costs for Process Cost System
Sweeties, Inc., manufactures a sugar product by a continuousprocess, involving three production departments—Refining, Sifting,and Packing. Assume that records indicate that direct materials,direct labor, and applied factory overhead for the firstdepartment, Refining, were $643,900, $225,400, and $148,100,respectively. Also, work in process in the Refining Department atthe beginning of the period totaled $36,100, and work in process atthe end of the period totaled $44,400.
a. Journalize the entries to record the flow ofcosts into the Refining Department during the period for (1) directmaterials, (2) direct labor, and (3) factory overhead.
1.
2.
3.
b. Journalize the entry to record the transferof production costs to the second department, Sifting.

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3.5 Ratings (304 Votes)

Solution:

a.	Direct materials

Sr. No.	General Journal	Debit	Credit
1.	Work in Process-Refining Department	643,900
	Materials		643,900

	[Being issuance of materials recorded ]

2.	Work in ProcessRefining Department	225,400
	Wages Payable		225,400

	[Being payroll cost of labor recorded ]

3.	Work in Process-Refining Department	148,100
	Factory Overhead-Refining Department		148,100

	[Being factory Overhead applied recorded]

b.
Sr. No.	General Journal	Debit	Credit
	Work in Process-Sifting Department	1,009,100
	Work in Process-Refining Department		1,009,100

	[Being work in process transferred from refining to sifting department recorded]

	work in process in the Refining Department

	beginning	36,100
	Add: During the period
	Materials	643,900
	Labor	225,400
	Factory overhead	148,100

	Less: End of the period balance	($44,400)

	Amount transfer to sifting department	1,009,100


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In: AccountingEntries for Flow of Factory Costs for Process Cost SystemSweeties, Inc., manufactures a sugar product...Entries for Flow of Factory Costs for Process Cost SystemSweeties, Inc., manufactures a sugar product by a continuousprocess, involving three production departments—Refining, Sifting,and Packing. Assume that records indicate that direct materials,direct labor, and applied factory overhead for the firstdepartment, Refining, were $643,900, $225,400, and $148,100,respectively. Also, work in process in the Refining Department atthe beginning of the period totaled $36,100, and work in process atthe end of the period totaled $44,400.a. Journalize the entries to record the flow ofcosts into the Refining Department during the period for (1) directmaterials, (2) direct labor, and (3) factory overhead.1.2.3.b. Journalize the entry to record the transferof production costs to the second department, Sifting.