Question

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 $371,000, S142,000, and $98,400, respectively. Also, work in process in the Refining Department at the beginning of the period totaled $29,200, and work in process at the end of the period totaled $28,400. Required: a. (1) On September 30, journalize the entry to record the flow of costs into the Refining Department during the period for direct materials.* (2) On September 30, journalize the entry to record the flow of costs into the Refining Department during the period for direct labor.* (3) On September 30, journalize the entry to record the flow of costs into the Refining Department during the period for factory overhead.* b. On September 30, journalize the entry to record the transfer of production costs to the second department, Sifting.* *Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for spaces or journal explanations. Every line on a journal page is used for debit or credit entries. Do not add explanations or skip a line between journal entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.

Answer 1

	Date	Description	Post Ref.	Debit	Credit	Assets	Liabilities	Equity
a.(1)	Sep 30	Work in Process - Refining Department		371,000		↑
		Materials			371,000	↓
a.(2)	Sep 30	Work in Process - Refining Department		142,000		↑
		Wages Payable			142,000		↑
a.(3)	Sep 30	Work in Process - Refining Department		98,400		↑
		Factory Overhead - Refining Department			98,400			↑
b.	Sep 30	Work in Process - Sifting Department		612,200		↑
		Work in Process - Refining Department			612,200	↓
		(29,200 + 371,000 + 142,000 + 98,400 - 28,400)