Two Departments, Journal Entries with Supporting CalculationsWeighted Average Method

Parker Laboratories, Inc., produces one of its products in two successive departments. All materials are added at the beginning of the process in Department 1; no materials are used in Department 2. Conversion costs are incurred evenly in both departments. Parker uses the weighted average method for process costing. August 1, 2016, inventory account balances are as follows:

Materials inventory $37,500
Work in process - Department 1 (6,000 units, 25% complete)
Direct materials	28,750
Conversion costs	46,875
Work in process - Department 2 (4,000 units, 35% complete)	102,500
Finished goods inventory (4,000 units @ $12.50)	125,000

During August, the following transactions occurred: 1. Purchased material on account, $145,000. 2. Placed 16,000 units of material at $10 per unit into process in Department 1. 3. Distributed total payroll costs: $209,425 of direct labor to Department 1, $105,750 of direct labor to Department 2, and $47,750 of indirect labor to Manufacturing Overhead. 4. Incurred other actual manufacturing overhead costs, $53,000. (Credit Other Accounts.) 5. Applied overhead to the two processing departments: Department 1, $53,200, Department 2, $44,750. 6. Transferred 20,000 completed units from Department 1 to Department 2. The 2,000 units remaining in Department 1 were 30% completed with respect to conversion costs. 7. Transferred 15,000 completed units from Department 2 to Finished Goods Inventory. The 9,000 units remaining in Department 2 were 40% completed with respect to conversion costs. 8. Sold 13,000 units on account at $60 per unit. Parker uses weighted average inventory costing for finished goods inventory.

A) Record the August transactions in general journal form for Department 1 and Department 2. Hint: Complete the product cost reports for Departments 1 and 2 before entering journal entries for transactions 6, 7, and 8.

Ref.	Description	Debit	Credit
1.