Exercise 5-7 Process Costing Journal Entries

EXERCISE 5-7 Process Costing Journal Entries L05-1 Chocolaterie de Geneve, SA, is located in a French-speaking canton in Switzerland. The company make chocolate truffles that are sold in popular embossed tins. The company has two processing departments Cooking and Molding. In the Cooking Department, the raw ingredients for the truffles are mixed and then cooked in special candy-making vats. In the Molding Department, the melted chocolate and other ingredi ents from the Cooking Department are carefully poured into molds and decorative flourishes are applied Process Costing by hand. After cooling, the truffles are packed for sale. The company uses a process costing system. The T-accounts below show the flow of costs through the two departments in April: Work in Process-Cooking 160,000 Balance 4/1 Direct materials Direct labor Overhead 8,000 Transferred out 42.000 50,000 75,000 Work in Process-Molding Transferred out 240,000 Balance 4/1 Transferred in Direct labor Overhead 4.000 160,000 36,000 45,000 Required: Prepare journal entries showing the flow of costs through the two processing departments during April Lullabe decianina Costs to Units-Welahted Average