Cost Flows Through Journal Entries

The Mixing Department performs a series of processes in which a fluid chemical is concentrated. Records indicate that the Mixing Department has been charged with $64,000 of direct labor costs. The manufacturing overhead rate is 150% of direct labor costs. Beginning work in process was $224,000, and ending work in process totaled $34,000. One- half of this periods completed products is sold on account at a price equal to 160% of its cost.

Prepare journal entries to record (1) various costs charged to the Mixing Department this period, (2) transfer of this periods completed product, and (3) sale of one-half of this periods production.

General Journal Ref Description Debit Credit To record direct labor costs. To record manufacturing overhead To record completed production To record cost of goods sold To record this period's sales