Question

In: Accounting

Bayas Corporation uses process costing. A number of transactions that occurred in June are listed below....

Bayas Corporation uses process costing. A number of transactions that occurred in June are listed below.

  1. (1) Raw materials that cost $40,900 are withdrawn from the storeroom for use in the Mixing Department. All of these raw materials are classified as direct materials.

  2. (2) Direct labor costs of $17,200 are incurred, but not yet paid, in the Mixing Department.

  3. (3) Manufacturing overhead of $46,800 is applied in the Mixing Department using the department’s predetermined overhead rate.

  4. (4) Units with a carrying cost of $88,700 finish processing in the Mixing Department and are transferred to the Drying Department for further processing.

  5. (5) Units with a carrying cost of $112,400 finish processing in the Drying Department, the final step in the production process, and are transferred to the finished goods warehouse.

  6. (6) Finished goods with a carrying cost of $99,300 are sold.

Required:

Prepare journal entries for each of the transactions listed above. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Journal entry worksheet 1-6

Solutions

Expert Solution

Solution:

Journal Entries - Bayas Corporation
Event Particulars Debit Credit
1 Work In Process - Mixing Dr $40,900.00
      To Raw Material Inventory $40,900.00
(To record raw material used in mixing department)
2 Work In Process - Mixing Dr $17,200.00
      To Wages Payable $17,200.00
(To record direct labor cost incurred)
3 Work In Process - Mixing Dr $46,800.00
      To Manufacturing overhead $46,800.00
(To record manufacturing overhead applied)
4 Work In Process - Drying Dr $88,700.00
      To Work In Process - Mixing $88,700.00
(Being completed cost transferred to drying for further processing)
5 Finished Goods Inventory Dr $112,400.00
      To Work In Process - Drying $112,400.00
(Being units completed transferred to finished goods)
6 Cost of goods sold Dr $99,300.00
      To Finished Goods Inventory $99,300.00
(To record cost of goods sold)

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