Chapter 5 Exercises.docx - Quality Brick Company produces...

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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. No Transaction General Journal Debit Credit 1 a. Work in process—Molding Department 23,000 Work in process—Firing Department 8,000 Raw materials 31,000 2 b. Work in process—Molding Department 12,000 Work in process—Firing Department 7,000 Salaries and wages payable 19,000 3 c. Work in process—Molding Department 25,000 Work in process—Firing Department 37,000 Manufacturing overhead 62,000 4 d. Work in process—Firing Department 57,000 Work in process—Molding Department 57,000 5 e. Finished goods 103,000 Work in process—Firing Department 103,000 6 f. Cost of goods sold 101,000 Finished goods 101,000 Exercise 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.

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