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, $23,000; and Firing Department, $8,000.
b.	Direct labor costs were incurred: Molding Department, $12,000; and Firing Department, $7,000.
c.	Manufacturing overhead was applied: Molding Department, $25,000; and Firing Department, $37,000.
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 $57,000.
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 $103,000.
f.	Finished bricks were sold to customers. According to the company's process costing system, the cost of the finished bricks sold was $101,000. Prepare journal entries to record items (a)-(f) above. (if no entry is required for a transaction/event. select "no journal entry required) -record issuance of raw materials for use in production -record direct labor costs incurred -record entry to apply manufacturing overhead -record transfer of unfired, molded bricks from the molding department to the firing deparment -record transfer of finished bricks from the fifing department to the finished brick warehouse -record COGS

Answer 1

General Journal					Debit	Credit
a.	work in process -molding Department				23,000
	work in process - firing department				8,000
	Raw materials					31,000
b.	work in process -molding Department				12,000
	work in process - firing department				7,000
	Wages payable					19,000
c.	work in process -molding Department				25,000
	work in process - firing department				37,000
	Manufacturing overhead					62,000
d.	work in process-firing department				57,000
	work in process-molding department					57,000
e.	finished goods inventory				103,000
	work in process-firing department					103,000
f.	Cost of goods sold				101,000
	finished goods inventory					101,000