Demo for Chapter 4

Demo for Chapter 4 - Chapter4 DemoProblem1

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Chapter 4 Demo Problem 1 Arizona Brick Corporation produces bricks in two processing  departments—molding and firing. Information relating to the  company's operations in March follows:  Raw materials were issued for use in production: Molding  Department, $28,000; and Firing Department, $5,000.  Direct labor costs were incurred: Molding Department, $18,000; and  Firing Department, $5,000.  Manufacturing overhead was applied: Molding Department, $24,000;  and Firing Department, $37,000.  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  $67,000.  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 $108,000.  Finished bricks were sold to customers. According to the company's  process costing system, the cost of the finished bricks sold was  $106,000.  Required:  Prepare journal entries to record items (a) through (f) above.  1
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Chapter 4 a. To record issuing raw materials for use in production: Work in Process—Molding Department. ........ $28,000 Work in Process—Firing Department. ............ $5,000 Raw Materials. ........................................ $33,000 b. To record direct labor costs incurred: Work in Process—Molding Department. ........ $18,000 Work in Process—Firing Department. ............ $5,000 Wages Payable. ...................................... $23,000 c. To record applying manufacturing overhead: Work in Process—Molding Department. ........ $24,000 Work in Process—Firing Department. ............ $37,000 Manufacturing Overhead. ........................ $61,000
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This note was uploaded on 08/31/2010 for the course AEM 3230 taught by Professor Little,j.e. during the Spring '08 term at Cornell.

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Demo for Chapter 4 - Chapter4 DemoProblem1

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