Entries for Flow of Factory Costs for Process Cost System

Radford Inc. manufactures a sugar product by a continuous process, involving three production departmentsRefining, Sifting, and Packing. Assume that records indicate that direct materials, direct labor, and applied factory overhead for the first department, Refining, were $1,250,000, $660,000, and $975,000, respectively. Also, work in process in the Refining Department at the beginning of the period totaled $328,000, and work in process at the end of the period totaled $295,000.

a. Journalize the entries to record the flow of costs into the Refining Department during the period for (1) direct materials, (2) direct labor, and (3) factory overhead. If an amount box does not require an entry, leave it blank.

1.	Work in Process-Refining Department
	Materials
2.	Work in Process-Refining Department
	Wages Payable
3.	Work in Process-Refining Department
	Factory Overhead-Refining Department

Feedback

Remember that in this department both materials and conversion costs are being added to the units before they are transferred out.

b. Journalize the entry to record the transfer of production costs to the second department, Sifting. If an amount box does not require an entry, leave it blank.

	Work in Process-Sifting Department
	Work in Process-Refining Department