Question

Entries for Flow of Factory Costs for Process Cost System

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 $386,100, $135,100, and $88,800, respectively. Also, work in process in the Refining Department at the beginning of the period totaled $21,600, and work in process at the end of the period totaled $26,600.

a. Journalize the entries to record the flow of costs into the Refining Department during the period for (1) direct materials, (2) direct labor, and (3) factory overhead. If an amount box does not require an entry, leave it blank.

1.		fill in the blank c45fd8fdafe6075_2	fill in the blank c45fd8fdafe6075_3
		fill in the blank c45fd8fdafe6075_5	fill in the blank c45fd8fdafe6075_6
2.		fill in the blank c45fd8fdafe6075_8	fill in the blank c45fd8fdafe6075_9
		fill in the blank c45fd8fdafe6075_11	fill in the blank c45fd8fdafe6075_12
3.		fill in the blank c45fd8fdafe6075_14	fill in the blank c45fd8fdafe6075_15
		fill in the blank c45fd8fdafe6075_17	fill in the blank c45fd8fdafe6075_18

b. Journalize the entry to record the transfer of production costs to the second department, Sifting. If an amount box does not require an entry, leave it blank.

		fill in the blank e4df07fedfb3fad_2	fill in the blank e4df07fedfb3fad_3
		fill in the blank e4df07fedfb3fad_5	fill in the blank e4df07fedfb3fad_6

Answer 1

Answer
		Dr. $	Cr. $
1	Work in progress - Refining Department	$           386,100
	Material		$     386,100
2	Work in progress - Refining Department	$           135,100
	Wages Payable		$     135,100
3	Work in progress - Refining Department	$             88,800
	Factory Overhead-Refining Department		$       88,800
.
B.
		Dr. $	Cr. $
1	Work in progress - Shifting Department	$           605,000
	Work in progress - Refining Department		$     605,000
Cost of Transfer =Opening WIP cost + Material + wages + Factory Overhead – Closing WIP Cost
21,600 + 386,100 + 135,100 + 88,800 – 26,600
Cost of Transfer = $605,000
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