In: Accounting
Radford Inc. manufactures a sugar product by a continuous process, involving three production departments-Refining, Sifting, and Packing. Assume that records indicate that direct materials, direct labor, and applied factory overhead for the first department, Refining, were $388,000, $141,000, and $96,800, respectively. Also, work in process in the Refining Department at the beginning of the period totaled $29,800, and work in process at the end of the period totaled $30,000.
Required:
a. |
|
||||||
b. | On September 30, journalize the entry to record the transfer of production costs to the second department, Sifting.* | ||||||
*Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for spaces or journal explanations. Every line on a journal page is used for debit or credit entries. Do not add explanations or skip a line between journal entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. |
CHART OF ACCOUNTSRadford Inc.General Ledger
ASSETS | |
110 | Cash |
121 | Accounts Receivable |
125 | Notes Receivable |
126 | Interest Receivable |
131 | Materials |
141 | Work in Process-Refining Department |
142 | Work in Process-Sifting Department |
143 | Work in Process-Packing Department |
151 | Factory Overhead-Refining Department |
152 | Factory Overhead-Sifting Department |
153 | Factory Overhead-Packing Department |
161 | Finished Goods |
171 | Supplies |
172 | Prepaid Insurance |
173 | Prepaid Expenses |
181 | Land |
191 | Factory |
192 | Accumulated Depreciation-Factory |
LIABILITIES | |
210 | Accounts Payable |
221 | Utilities Payable |
231 | Notes Payable |
236 | Interest Payable |
251 | Wages Payable |
EQUITY | |
311 | Common Stock |
340 | Retained Earnings |
351 | Dividends |
390 | Income Summary |
REVENUE | |
410 | Sales |
610 | Interest Revenue |
EXPENSES | |
510 | Cost of Goods Sold |
520 | Wages Expense |
531 | Selling Expenses |
532 | Insurance Expense |
533 | Utilities Expense |
534 | Supplies Expense |
540 | Administrative Expenses |
561 | Depreciation Expense-Factory |
590 | Miscellaneous Expense |
710 | Interest Expense |
a(1). On September 30, journalize the entry to record the flow of costs into the Refining Department during the period for direct materials. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for spaces or journal explanations. Every line on a journal page is used for debit or credit entries. Do not add explanations or skip a line between journal entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.
PAGE 10
JOURNAL
ACCOUNTING EQUATION
DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT | ASSETS | LIABILITIES | EQUITY | |
---|---|---|---|---|---|---|---|---|
1 |
||||||||
2 |
a(2). On September 30, journalize the entry to record the flow of costs into the Refining Department during the period for direct labor. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for spaces or journal explanations. Every line on a journal page is used for debit or credit entries. Do not add explanations or skip a line between journal entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.
PAGE 10
JOURNAL
ACCOUNTING EQUATION
DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT | ASSETS | LIABILITIES | EQUITY | |
---|---|---|---|---|---|---|---|---|
1 |
||||||||
2 |
a(3). On September 30, journalize the entry to record the flow of costs into the Refining Department during the period for factory overhead. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for spaces or journal explanations. Every line on a journal page is used for debit or credit entries. Do not add explanations or skip a line between journal entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.
PAGE 10
JOURNAL
ACCOUNTING EQUATION
DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT | ASSETS | LIABILITIES | EQUITY | |
---|---|---|---|---|---|---|---|---|
1 |
||||||||
2 |
b. On September 30, journalize the entry to record the transfer of production costs to the second department, Sifting. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for spaces or journal explanations. Every line on a journal page is used for debit or credit entries. Do not add explanations or skip a line between journal entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.
PAGE 10
JOURNAL
ACCOUNTING EQUATION
DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT | ASSETS | LIABILITIES | EQUITY | |
---|---|---|---|---|---|---|---|---|
1 |
||||||||
2 |
a1 | ||||||
Date | Description | Debit | Credit | Assets | Liabilities | Equity |
September 30 | Work in Process-Refining Department | 388000 | ↑ | |||
Materials | 388000 | ↓ | ||||
a2 | ||||||
Date | Description | Debit | Credit | Assets | Liabilities | Equity |
September 30 | Work in Process-Refining Department | 141000 | ↑ | |||
Wages Payable | 141000 | ↑ | ||||
a3 | ||||||
Date | Description | Debit | Credit | Assets | Liabilities | Equity |
September 30 | Work in Process-Refining Department | 96800 | ↑ | |||
Factory Overhead-Refining Department | 96800 | ↓ | ||||
b | ||||||
Date | Description | Debit | Credit | Assets | Liabilities | Equity |
September 30 | Work in Process-Sifting Department | 625600 | ↑ | |||
Work in Process-Refining Department | 625600 | ↓ |
Workings: | |
Beginning balance | 29800 |
Direct materials | 388000 |
Direct labor | 141000 |
Applied factory overhead | 96800 |
Total costs | 655600 |
Less: Ending balance | 30000 |
Costs transferred to Sifting | 625600 |