Process Costing Journal Entries [LO1]

Arizona Brick Corporation produces bricks in two processing departments—Molding and Firing.

Information relating to the company’s operations in March follows:

a. Raw materials were issued for use in production: Molding Department, $28,000; and Firing Department, $5,000.

b. Direct labor costs were incurred: Molding Department, $18,000; and Firing Department,

$5,000.

c. Manufacturing overhead was applied: Molding Department, $24,000; 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 $67,000.

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

$108,000.

f. Finished bricks were sold to customers. According to the company’s process costing system, the cost of the finished bricks sold was $106,000.

Required:

Prepare journal entries to record items

(a) through

(f) above.