Process Costing Journal Entries [LO1]

Schneider Brot is a bread-baking company located in Aachen, Germany, near the Dutch border.

The company uses a process costing system for its single product—a popular pumpernickel bread.

Schneider Brot has two processing departments—Mixing and Baking. The T-accounts below show the flow of costs through the two departments in April (all amounts are in the currency euros):

Required:
Prepare journal entries showing the flow of costs through the two processing departments during April.

Transcribed Image Text:

Work in ProcessMixing Balance 4/1 Direct materials 10,000 Transferred out 760,000 330,000 Direct labor Overhead 260,000 190,000 Work in Process-Baking Balance 4/1 20,000 Transferred out 980,000 Transferred in 760,000 Direct labor 120,000 Overhead 90,000