Question

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

1. Raw materials used in production: Molding Department, $29,000; and Firing Department, $5,600.
2. Direct labor costs incurred: Molding Department, $17,600; and Firing Department, $5,600.
3. Manufacturing overhead was applied: Molding Department, $25,700; and Firing Department, $35,700.
4. 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 $70,000.
5. 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 $108,000.
6. Finished bricks were sold to customers. According to the company’s process costing system, the cost of the finished bricks sold was $104,000.

Answer 1

		Debit	Credit
a	Work in process-Molding Department	29000
	Work in process-Firing Department	5600
	Raw materials		34600
b	Work in process-Molding Department	17600
	Work in process-Firing Department	5600
	Wages payable		23200
c	Work in process-Molding Department	25700
	Work in process-Firing Department	35700
	Manufacturing overhead		61400
d	Work in process-Firing Department	70000
	Work in process-Molding Department		70000
e	Finished goods	108000
	Work in process-Firing Department		108000
f	Cost of goods sold	104000
	Finished goods		104000