Exercise 4-1 Process Costing Journal Entries [LO4-1]

Quality Brick Company produces bricks in two processing departmentsMolding and Firing. Information relating to the companys operations in March follows:

a.	Raw materials were issued for use in production: Molding Department, $28,400; and Firing Department, $4,800.
b.	Direct labor costs were incurred: Molding Department, $17,200; and Firing Department, $4,100.
c.	Manufacturing overhead was applied: Molding Department, $24,400; and Firing Department, $37,600.
d.	Unfired, molded bricks were transferred from the Molding Department to the Firing Department. According to the company's process costing system, the cost of the unfired, molded bricks was $65,900.
e.	Finished bricks were transferred from the Firing Department to the finished goods warehouse. According to the company's process costing system, the cost of the finished bricks was $108,200.
f.	Finished bricks were sold to customers. According to the company's process costing system, the cost of the finished bricks sold was $105,800.

Required:

Prepare journal entries to record items (a) through (f) above. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Journal entry worksheet

Record issuance of raw materials for use in production.

Note: Enter debits before credits.

Transaction	General Journal	Debit	Credit
a.

Journal entry worksheet

Record direct labor costs incurred.

Note: Enter debits before credits.

Transaction	General Journal	Debit	Credit
b.

Journal entry worksheet

Record entry to apply manufacturing overhead.

Note: Enter debits before credits.

Transaction	General Journal	Debit	Credit
c.

Journal entry worksheet

Record transfer of unfired, molded bricks from the Molding Department to the Firing Department.

Note: Enter debits before credits.

Transaction	General Journal	Debit	Credit
d.

Journal entry worksheet

Record transfer of finished bricks from the Firing Department to the finished bricks warehouse.

Note: Enter debits before credits.

Transaction	General Journal	Debit	Credit
e.

Journal entry worksheet

Record cost of goods sold.

Note: Enter debits before credits.

Transaction	General Journal	Debit	Credit
f.

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