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 were issued for use in production: Molding Department, $29,400; and Firing Department, $4,500.
b.	Direct labor costs were incurred: Molding Department, $18,900; and Firing Department, $5,100.
c.	Manufacturing overhead was applied: Molding Department, $22,200; and Firing Department, $36,800.
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 $66,900.
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 $109,400.
f.	Finished bricks were sold to customers. According to the company's process costing system, the cost of the finished bricks sold was $104,600.

Required:

Prepare journal entries to record items (a) through (f) above. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Answer 1

Journal Entries in the Books of QualityBrick company
	Particulars				Debit	Credit
A	Work in progress molding				$            29,400.00
	Work in progress firing				$               4,500.00
	raw material					$              33,900.00
	(to record use of direct material)
B	work in progress molding				$            18,900.00
	work in progress firing				$               5,100.00
	wages payable					$              24,000.00
	(to record direct labour cost)
C	Work in progress molding				$            22,200.00
	work in progress firing				$            36,800.00
	manufacturing overhead					$              59,000.00
	(to record overhead to manufacturing deptt)
D	work in progress firing				$            66,900.00
	work in progress molding					$              66,900.00
	(to record transfer of goods)
E	Finished goods				$         1,09,400.00
	work in progress firing					$           1,09,400.00
	(to record completion of goods)
F	Cost of goods sold				$         1,04,600.00
	Finished goods					$           1,04,600.00
	(to record transfer of finished goods to COGS)