Question

Sweeties, 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 $388,000, $141,000, and $96,800, respectively. Also, work in process in the Refining Department at the beginning of the period totaled $29,800, and work in process at the end of the period totaled $30,000.

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 exact wording of account titles.

Answer 1

a
		Debit	Credit
1	Work in Process-Refining Department	388000
	Materials		388000
2	Work in Process-Refining Department	141000
	Wages payable		141000
3	Work in Process-Refining Department	96800
	Factory Overhead-Refining Department		96800
b	Work in Process-Sifting Department	625600		=29800+388000+141000+96800-30000
	Work in Process-Refining Department		625600