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., 5,600 units, 40% completed					10,752
	31	Direct materials, 29,900 units	47,840				58,592
	31	Direct labor	14,430				73,022
	31	Factory overhead	8,117				81,139
	31	Goods transferred, 33,400 units			?		?
	31	Bal., 2,100 units, 50% completed					?

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

	Work in Process-Papermaking Department	fill in the blank
	Materials-Pulp		fill in the blank

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.

	Work in Process-Papermaking Department	fill in the blank	fill in the blank
	Wages Payable	fill in the blank	fill in the blank
	Factory Overhead-Papermaking Department	fill in the blank	fill in the blank

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.

	Work in Process-Converting Department	fill in the blank
	Work in Process-Papermaking Department		fill in the blank

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