Question
During February, the following transactions were recorded at Ferrington Corporation. The company uses process costing. (1) Raw materials that cost $44,800 are withdrawn from the
During February, the following transactions were recorded at Ferrington Corporation. The company uses process costing.
| (1) | Raw materials that cost $44,800 are withdrawn from the storeroom for use in the Assembly Department. All of these raw materials are classified as direct materials. |
| (2) | Direct labor costs of $17,300 are incurred, but not yet paid, in the Assembly Department. |
| (3) | Manufacturing overhead of $32,000 is applied in the Assembly Department using the department's predetermined overhead rate. |
| (4) | Units with a carrying cost of $80,700 finish processing in the Assembly Department and are transferred to the Painting Department for further processing. |
| (5) | Units with a carrying cost of $102,600 finish processing in the Painting Department, the final step in the production process, and are transferred to the finished goods warehouse. |
| (6) | Finished goods with a carrying cost of $98,200 are sold. |
| Required: |
| Prepare journal entries for each of the transactions listed above. |
| Sl No | General Journal | Debit | Credit |
| (1) | (Click to select)Work in Process-Painting DepartmentFinished GoodsRaw MaterialsWork in Process-Assembly DepartmentCost of Goods SoldSalaries and Wages PayableManufacturing OverheadAccounts Payable | ||
| (Click to select)Accounts PayableManufacturing OverheadRaw MaterialsFinished GoodsSalaries and Wages PayableWork in Process-Assembly DepartmentWork in Process-Painting DepartmentCost of Goods Sold | |||
| (2) | (Click to select)Work in Process-Assembly DepartmentAccounts PayableSalaries and Wages PayableWork in Process-Painting DepartmentCost of Goods SoldRaw MaterialsFinished GoodsManufacturing Overhead | ||
| (Click to select)Manufacturing OverheadCost of Goods soldWork in Process-Painting DepartmentAccounts PayableFinished GoodsRaw MaterialsSalaries and Wages PayableWork in Process-Assembly Department | |||
| (3) | (Click to select)Manufacturing OverheadSalaries and Wages PayableFinished GoodsCost of Goods SoldAccounts PayableWork in Process-Assembly DepartmentWork in Process-Painting DepartmentRaw Materials | ||
| (Click to select)Cost of Goods SoldSalaries and Wages PayableManufacturing OverheadWork in Process-Assembly DepartmentFinished GoodsWork in Process-Painting DepartmentAccounts PayableRaw Materials | |||
| (4) | (Click to select)Raw MaterialsFinished GoodsWork in Process-Painting DepartmentManufacturing OverheadSalaries and Wages PayableCost of Goods SoldWork in Process-Assembly DepartmentAccounts Payable | ||
| (Click to select)Cost of Goods SoldManufacturing OverheadRaw MaterialsFinished GoodsAccounts PayableWork in Process-Assembly DepartmentWork in Process-Painting DepartmentSalaries and Wages Payable | |||
| (5) | (Click to select)Accounts PayableCost of Goods SoldFinished GoodsRaw MaterialsWork in Process-Assembly DepartmentSalaries and Wages PayableManufacturing OverheadWork in Process-Painting Department | ||
| (Click to select)Salaries and Wages PayableAccounts PayableFinished GoodsWork in Process-Painting DepartmentWork in Process-Assembly DepartmentCost of Goods SoldManufacturing OverheadRaw Materials | |||
| (6) | (Click to select)Work in Process-Painting DepartmentFinished GoodsCost of Goods SoldWork in Process-Assembly DepartmentSalaries and Wages PayableManufacturing OverheadRaw MaterialsAccounts Payable | ||
| (Click to select)Cost of Goods SoldRaw MaterialsWork in Process-Assembly DepartmentWork in Process-Painting DepartmentAccounts PayableSalaries and Wages PayableFinished GoodsManufacturing Overhead |
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