Bayas Corporation uses process costing. A number of transactions that occurred i

Question

Bayas Corporation uses process costing. A number of transactions that occurred in June are listed below.

(1) Raw materials that cost $41,300 are withdrawn from the storeroom for use in the Mixing Department. All of these raw materials are classified as direct materials.

(2) Direct labor costs of $17,600 are incurred, but not yet paid, in the Mixing Department.

(3) Manufacturing overhead of $47,200 is applied in the Mixing Department using the department’s predetermined overhead rate.

(4) Units with a carrying cost of $89,100 finish processing in the Mixing Department and are transferred to the Drying Department for further processing.

(5) Units with a carrying cost of $112,800 finish processing in the Drying Department, the final step in the production process, and are transferred to the finished goods warehouse.

(6) Finished goods with a carrying cost of $99,700 are sold.

Required:

Prepare journal entries for each of the transactions listed above. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Explanation / Answer

Transaction            General Journal              Debit Credit 1) Work in process inventory-mixng 41,300 Raw materials inventory 41,300 2) Work in process inventory-mixing 17,600 Factory payroll 17,600 3) work in process inventory-mixing 47,200 Factory overhead 47,200 4) Work in process invnetory-drying deptt 89,100 Work in process inventory-mixing deptt 89,100 5) Finished goods inventory 112,800 Work in process inventory-drying deptt 112,800 6) cost of goods sold 99,700 finished goods inventory 99,700

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