Cost of Production and Journal Entries Lighthouse Paper Company manufactures newsprint. The product is manufactured in two departments, Paper making 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 Process --Papermaking Department Account No. Date Item Balance Debit Credit Debit Credit Mar. 3,944 52,530 56,474 14,260 1 Bal., 5,800 units, 80% completed 31 Direct materials, 30,900 units 31 Direct labor 31 Factory overhead 31 Goods transferred, 34,500 units 31 Bal., 2,200 units, 90% completed 70,734 78,762 8,028