Quality Brick Company produces bricks in two processing departmentsMolding and Firing. Information relating to the...
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Quality Brick Company produces bricks in two processing departmentsMolding and Firing. Information relating to the companys operations in March follows:
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Raw materials used in production: Molding Department, $23,000; and Firing Department, $8,000.
Direct labor costs incurred: Molding Department, $12,000; and Firing Department, $7,000.
Manufacturing overhead was applied: Molding Department, $25,000; and Firing Department, $37,000.
Unfired, molded bricks were transferred from the Molding Department to the Firing Department. According to the companys process costing system, the cost of the unfired, molded bricks was $57,000.
Finished bricks were transferred from the Firing Department to the finished goods warehouse. According to the companys process costing system, the cost of the finished bricks was $103,000.
Finished bricks were sold to customers. According to the companys process costing system, the cost of the finished bricks sold was $101,000
1)Record issuance of raw materials for use in production.
Transaction
General Journal
Debit
Credit
a.
2)Record direct labor costs incurred.
Note: Enter debits before credits
Transaction
General Journal
Debit
Credit
b.
3) Record entry to apply manufacturing overhead.
Note: Enter debits before credits.
Transaction
General Journal
Debit
Credit
c.
.
4) Record transfer of unfired, molded bricks from the Molding Department to the Firing Department.
Note: Enter debits before credits.
Transaction
General Journal
Debit
Credit
d.
5)Record transfer of finished bricks from the Firing Department to the finished goods warehouse.
Note: Enter debits before credits.
Transaction
General Journal
Debit
Credit
e.
6)Record cost of goods sold.
Note: Enter debits before credits.
Transaction
General Journal
Debit
Credit
f.
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