Radford 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 $371,000, $142,000, and $98,400, respectively. Also, work in process in the Refining Department at the beginning of the period totaled $29,200, and work in process at the end of the period totaled $28,400.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 the exact wording of the account titles. CNOW journals do not use lines for spaces or journal explanations. Every line on a journal page is used for debit or credit entries. Do not add explanations or skip a line between journal entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.

CHART OF ACCOUNTS

Radford Inc.

General Ledger

	ASSETS
110	Cash
121	Accounts Receivable
125	Notes Receivable
126	Interest Receivable
131	Materials
141	Work in Process-Refining Department
142	Work in Process-Sifting Department
143	Work in Process-Packing Department
151	Factory Overhead-Refining Department
152	Factory Overhead-Sifting Department
153	Factory Overhead-Packing Department
161	Finished Goods
171	Supplies
172	Prepaid Insurance
173	Prepaid Expenses
181	Land
191	Factory
192	Accumulated Depreciation-Factory

	LIABILITIES
210	Accounts Payable
221	Utilities Payable
231	Notes Payable
236	Interest Payable
251	Wages Payable

	EQUITY
311	Common Stock
340	Retained Earnings
351	Dividends
390	Income Summary

a(1). On September 30, journalize the entry to record the flow of costs into the Refining Department during the period for direct materials. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for spaces or journal explanations. Every line on a journal page is used for debit or credit entries. Do not add explanations or skip a line between journal entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.

How does grading work?

PAGE 10

JOURNAL

ACCOUNTING EQUATION

Score: 20/25

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1
2

Points:

4 / 5

a(2). On September 30, journalize the entry to record the flow of costs into the Refining Department during the period for direct labor. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for spaces or journal explanations. Every line on a journal page is used for debit or credit entries. Do not add explanations or skip a line between journal entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.

All transactions on this page must be entered (except for post ref(s)) before you will receive Check My Work feedback.

PAGE 10

JOURNAL

ACCOUNTING EQUATION

Score: 8/25

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1
2

Points:

1.6 / 5

a(3). On September 30, journalize the entry to record the flow of costs into the Refining Department during the period for factory overhead. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for spaces or journal explanations. Every line on a journal page is used for debit or credit entries. Do not add explanations or skip a line between journal entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.

All transactions on this page must be entered (except for post ref(s)) before you will receive Check My Work feedback.

PAGE 10

JOURNAL

ACCOUNTING EQUATION

Score: 10/25

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1
2

Points:

2 / 5

Feedback

Check My Worka(1), a(2) and a(3). Remember that in this department both materials and conversion costs are being added to the units before they are transferred out.

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 the exact wording of the account titles. CNOW journals do not use lines for spaces or journal explanations. Every line on a journal page is used for debit or credit entries. Do not add explanations or skip a line between journal entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.

All transactions on this page must be entered (except for post ref(s)) before you will receive Check My Work feedback.

PAGE 10

JOURNAL

ACCOUNTING EQUATION

Score: 10/25

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1
2

Points:

2 / 5

Feedback

Check My Workb. Costs accumulate as units are transferred from one department to the next. The costs need to be transferred from one department to the next so the units total cost is properly reflected in finished goods inventory.