Sweeties, Inc., manufactures a sugar product by a continuous process involving t
ID: 2394282 • Letter: S
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 $381,000, $149,000, and $96,200, respectively. Also, work in process in the Refining Department at the beginning of the period totaled $30,000, and work in process at the end of the period totaled $28,600.
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.Explanation / Answer
Note: Kindly confirm the exact wording of account titles per the chart of accounts since the same is not provided with the question.
Transfer of production costs from Refining to Sifting = $30000 + $381000 + $149000 + $96200 - $28600 = $627600
Transaction Date General Journal Debit Credit A.(1) Sep. 30 Work in process-Refining department 381000 Raw materials inventory 381000 (To record direct materials used) A.(2) Sep. 30 Work in process-Refining department 149000 Wages payable 149000 (To record direct labor costs incurred) A.(3) Sep. 30 Work in process-Refining department 96200 Factory overhead 96200 (To record factory overheads applied) B. Sep. 30 Work in process-Sifting department 627600 Work in process-Refining department 627600 (To record costs transferred to Sifting department)Related Questions
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