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
Mar.	1	Bal., 5,900 units, 70% completed					5,310
	31	Direct materials, 31,500 units	47,250				52,560
	31	Direct labor	14,710				67,270
	31	Factory overhead	8,271				75,541
	31	Goods transferred, 35,200 units			?		?
	31	Bal., 2,200 units, 80% completed					?

a1. Prepare the March journal entry for the Papermaking Department for the materials charged to production.

	CashFactory Overhead-Papermaking DepartmentFinished GoodsMaterials-PulpWork in Process-Converting DepartmentWork in Process-Papermaking Department	- Select -
	CashFactoryMaterials-PulpWages PayableWork in Process-Converting DepartmentWork in Process-Papermaking Department		- Select -

a2. Prepare the March journal entry for the Papermaking Department for the conversion costs charged to production. If an amount box does not require an entry, leave it blank.

	CashFinished GoodsMaterials-PulpWages ExpenseWork in Process-Converting DepartmentWork in Process-Papermaking Department	- Select -	- Select -
	Accounts ReceivableCashCost of Goods SoldWages PayableWork in Process-Converting DepartmentWork in Process-Papermaking Department	- Select -	- Select -
	Accounts PayableCashFactory Overhead-Papermaking DepartmentMaterials-PulpWork in Process-Converting DepartmentWork in Process-Papermaking Department	- Select -	- Select -

a3. Prepare the March journal entry for the Papermaking Department for the completed production transferred to the Converting Department. If required, round your interim calculations to two decimal places and your final answer to the nearest dollar.

	CashFactory Overhead-Papermaking DepartmentFinished GoodsMaterials-PulpWork in Process-Converting DepartmentWork in Process-Papermaking Department	- Select -
	Accounts PayableCashFactory Overhead-Papermaking DepartmentMaterials-PulpWork in Process-Converting DepartmentWork in Process-Papermaking Department		- Select -

b. Determine the Work in ProcessPapermaking Department March 31 balance. If required, round your interim calculations to two decimal places and your final answer to the nearest dollar. $fill in the blank 9b2f0d01df9807e_1