Cost of Production and Journal Entries

Lighthouse Paper Company manufactures newsprint. The product is manufactured in two departments, Papermaking and Converting. Pulp is first placed into a vessel at the beginning of papermaking production. The following information concerns production in the Papermaking Department for March.

Account Work in ProcessPapermaking Department							Account No.
Date		Item	Debit		Credit		Balance
							Debit		Credit
Jan.	1	Bal., 9,300 units, 70% completed					10,602
	31	Direct materials, 49,600 units	94,240				104,842
	31	Direct labor	26,470				131,312
	31	Factory overhead	14,882				146,194
	31	Goods transferred, 55,400 units			?		?
	31	Bal., 3,500 units, 80% completed