Process Costing Journal Entries
EXERCISE 4–1 Process Costing Journal Entries [LO1]
Arizona Brick Corporation produces bricks in two processing departments—Molding and Firing. Information relating to the company’s operations in March follows:
a.      Raw materials were issued for use in production: Molding Department, $28,000; and Firing Department, $5,000.
b.      Direct labor costs were incurred: Molding Department, $18,000; and Firing Department,
$5,000.
c.      Manufacturing overhead was applied: Molding Department, $24,000; and Firing Department,
$37,000.
d.      Unfired, molded bricks were transferred from the Molding Department to the Firing Depart- ment. According to the company’s process costing system, the cost of the unfired, molded bricks was $67,000.
e.      Finished bricks were transferred from the Firing Department to the finished goods ware- house. According to the company’s process costing system, the cost of the finished bricks was
$108,000.
f.      Finished bricks were sold to customers. According to the company’s process costing system, the cost of the finished bricks sold was $106,000.
Required:
Prepare journal entries to record items (a) through (f) above.
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Posted 01 May 2017 04:05 PM
My Price 7.00
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