Question

Chocolaterie de Geneve, SA, is located in a French-speaking canton in Switzerland. The company makes chocolate truffles that are sold in popular embossed tins. The company has two processing departments—Cooking and Molding. In the Cooking Department, the raw ingredients for the truffles are mixed and then cooked in special candy-making vats. In the Molding Department, the melted chocolate and other ingredients from the Cooking Department are carefully poured into molds and decorative flourishes are applied by hand. After cooling, the truffles are packed for sale. The company uses a process costing system. The T-accounts below show the flow of costs through the two departments in April:

Work in Process—Cooking
Balance 4/1	9,000	Transferred out	763,000
Direct materials	334,000
Direct labor	259,000
Overhead	191,000

Work in Process—Molding
Balance 4/1	17,000	Transferred out	984,000
Transferred in	763,000
Direct labor	122,000
Overhead	94,000

Required:

Prepare journal entries showing the flow of costs through the two processing departments during April. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Answer 1

		Debit	Credit
1	Work in process-cooking	334000
	Raw materials inventory		334000
2	Work in process—Cooking	259000
	Work in process—Molding	122000
	Wages payable		381000
3	Work in process—Cooking	191000
	Work in process—Molding	94000
	Manufacturing overhead		285000
4	Work in process—Molding	763000
	Work in process—Cooking		763000
5	Finished Goods	984000
	Work in process—Molding		984000
Alternatively separate journal entries can be passed for cooking and molding in transaction 2 and 3
	Work in process—Cooking	259000
	Wages payable		259000
	Work in process—Molding	122000
	Wages payable		122000
	Work in process—Cooking	191000
	Manufacturing overhead		191000
	Work in process—Molding	122000
	Manufacturing overhead		122000