Question

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

1. (1) Raw materials that cost $41,100 are withdrawn from the storeroom for use in the Mixing Department.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 $17,400 are incurred, but not yet paid, in the Mixing Department.

3. (3) Manufacturing overhead of $47,000 is applied in the Mixing Department using the department’s predetermined overhead rate.

4. (4) Units with a carrying cost of $88,900 finish processing in the Mixing Department and are transferred to the Drying Department for further processing.

5. (5) Units with a carrying cost of $112,600 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 $99,500 are sold.

7. (QUESTION): 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.)

Answer 1

Solution:

Journal Entries - Bayas Corporation
Event	Particulars	Debit	Credit
1	Work In Process - Mixing Dr	$41,100.00
	To Raw materials Inventory		$41,100.00
	(To record use of direct materials)
2	Work In Process - Mixing Dr	$17,400.00
	To Factory Wages Payable		$17,400.00
	(To record factory labor cost incurred)
3	Work In Process - Mixing Dr	$47,000.00
	To Factory Overhead		$47,000.00
	(To apply overhead)
4	Work In Process - Drying Dr	$88,900.00
	To Work In Process - Mixing		$88,900.00
	(Being mixing cost transferred to Drying)
5	Finished goods inventory Dr	$112,600.00
	To Work In Process - Drying		$112,600.00
	(Being cost of completed units transferred to finished goods)
6	Cost of goods sold Dr	$99,500.00
	To Finished goods Inventory		$99,500.00
	(To record cost of goods sold)