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 used in production: Molding Department, $23,000; and Firing Department, $8,000.b.Direct labor costs 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.g.NoTransactionGeneral JournalDebitCredit1a.Work in process—Molding Department23,000Work in process—Firing Department8,000Raw materials31,0002b.Work in process—Molding Department12,000Work in process—Firing Department7,000Salaries and wages payable19,0003c.Work in process—Molding Department25,000Work in process—Firing Department37,000Manufacturing overhead62,0004d.Work in process—Firing Department57,000Work in process—Molding Department57,0005e.Finished goods103,000Work in process—Firing Department103,0006f.Cost of goods sold101,000Finished goods101,000Exercise 5-7 Process Costing Journal Entries [LO5-1]
Chocolaterie de Geneve, SA, is located in a French-speaking canton in Switzerland. The company makes chocolate truffles that are sold in popular embossed tins.