Question

Sweeties, Inc., manufactures a sugar product by a continuous process, involving three production departments-Refining, Sifting, and Packing. Assume that records indicate that direct materials, direct labor, and applied factory overhead for the first department, Refining, were $369,000, $146,000, and $97,600, respectively. Also, work in process in the Refining Department at the beginning of the period totaled $30,200, and work in process at the end of the period totaled $28,400.Required:a. (1) On September 30, journalize the entry to record the flow of costs into the Refining Department during the period for direct materials.*(2) On September 30, journalize the entry to record the flow of costs into the Refining Department during the period for direct labor.*(3) On September 30, journalize the entry to record the flow of costs into the Refining Department during the period for factory overhead.*b. On September 30, journalize the entry to record the transfer of production costs to the second department, Sifting.**Refer to the Chart of Accounts for exact wording of account titles.a(1). On September 30, journalize the entry to record the flow of costs into the Refining Department during the period for direct materials. Refer to the Chart of Accounts for exact wording of account titles.PAGE 10JOURNALDATE DESCRIPTION POST. REF. DEBIT CREDIT12a(2). On September 30, journalize the entry to record the flow of costs into the Refining Department during the period for direct labor. Refer to the Chart of Accounts for exact wording of account titles.PAGE 10JOURNALDATE DESCRIPTION POST. REF. DEBIT CREDIT12a(3). On September 30, journalize the entry to record the flow of costs into the Refining Department during the period for factory overhead. Refer to the Chart of Accounts for exact wording of account titles.PAGE 10JOURNALDATE DESCRIPTION POST. REF. DEBIT CREDIT12b. On September 30, journalize the entry to record the transfer of production costs to the second department, Sifting. Refer to the Chart of Accounts for exact wording of account titles.PAGE 10JOURNALDATE DESCRIPTION POST. REF. DEBIT CREDIT12

Answer 1

Answer and Explanation:

Journal Entries to record the flow of costs into the refining department

1.

Dr Work-in process - Refining Department $369,000

Cr Materials $369,000

2.

Dr Work-in process - Refining Department $146,000

Cr Wages Payable $146,000

3.

Dr Work-in process - Refining Department $97,600

Cr Factories Overhead - Refining Department $97,600

b. Entry to record the transfer of production costs to the second department

Dr Work-in process - Sifting Department $614,400

Cr Work-in process - Refining Department $614,400

Work-in process - Sifting Department [$30,200 + ($369,000 + $146,000 + $97,600) - $28,400]

=$30,200+($612,600-$28,400)

=$30,200+$584,200

=$614,400