Question

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

Raw materials used in production: Molding Department, $26,900; and Firing Department, $4,000.

Direct labor costs incurred: Molding Department, $17,000; and Firing Department, $4,500.

Manufacturing overhead was applied: Molding Department, $22,200; and Firing Department, $36,300.

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 $67,900.

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 $108,600.

Finished bricks were sold to customers. According to the company’s process costing system, the cost of the finished bricks sold was $104,900.

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.)

.

Clonex Labs, Inc., uses the weighted-average method in its process costing system. The following data are available for one department for October:

		Percent Completed
	Units	Materials		Conversion
Work in process, October 1	50,000	90	%	60	%
Work in process, October 31	39,000	71	%	46	%

The department started 396,000 units into production during the month and transferred 407,000 completed units to the next department.

Required:

Compute the equivalent units of production for October.

Answer 1

General Journal					Debit	Credit
a.	work in process -molding Department				26,900
	work in process - firing department				4,000
	Raw materials					30,900
b.	work in process -molding Department				17,000
	work in process - firing department				4,500
	Wages payable					21,500
c.	work in process -molding Department				22,200
	work in process - firing department				36,300
	Manufacturing overhead					58,500
d.	work in process-firing department				67,900
	work in process-molding department					67,900
e.	finished goods inventory				108,600
	work in process-firing department					108,600
f.	Cost of goods sold				104,900
	finished goods inventory					104,900
2)	Equivalent units
					% mate	materials	%CC	cC
	completed & transferred			407,000	100%	407,000	100%	407,000
	ending work in process			39,000	71%	27690	46%	17940
	Equivalent units					434,690		424,940