Entries for Materials Cost Flows in a Process Cost System

The Hershey Company manufactures chocolate confectionery products. The three largest raw materials are cocoa, sugar, and dehydrated milk. These raw materials first go into the Blending Department. The blended product is then sent to the Molding Department, where the bars of candy are formed. The candy is then sent to the Packing Department, where the bars are wrapped and boxed. The boxed candy is then sent to the distribution center, where it is eventually sold to food brokers and retailers.

Show the accounts debited and credited for each of the following business events:

a. Materials used by the Blending Department.

Debit account	Cost of Goods SoldFinished GoodsWork in Process-Blending DepartmentWork in Process-Molding DepartmentWork in Process-Packing Department
Credit account	Accounts PayableCost of Goods SoldFinished GoodsMaterials-CocoaWork in Process-Blending Department
Credit account	CashFinished GoodsMaterials-SugarWork in Process-Blending DepartmentWork in Process-Molding Department
Credit account	Cost of Goods SoldFinished GoodsMaterials-Dehydrated MilkWork in Process-Blending DepartmentWork in Process-Packing Department

b. Transfer of blended product to the Molding Department.

Debit account	Cost of Goods SoldFinished GoodsWork in Process-Blending DepartmentWork in Process-Molding DepartmentWork in Process-Packing Department
Credit account	Cost of Goods SoldFinished GoodsWork in Process-Blending DepartmentWork in Process-Molding DepartmentWork in Process-Packing Department

c. Transfer of chocolate to the Packing Department.

Debit account	Cost of Goods SoldFinished GoodsMaterialsWork in Process-Molding DepartmentWork in Process-Packing Department
Credit account	Finished GoodsMaterialsWork in Process-Blending DepartmentWork in Process-Molding DepartmentWork in Process-Packing Department

d. Transfer of boxed chocolate to the distribution center.

Debit account	Cost of Goods SoldFinished GoodsMaterialsWork in Process-Molding DepartmentWork in Process-Packing Department
Credit account	Accounts PayableCost of Goods SoldFinished GoodsWork in Process-Blending DepartmentWork in Process-Packing Department

e. Sale of boxed chocolate.

Debit account	Cost of Goods SoldFinished GoodsMaterialsWork in Process-Packing DepartmentWork in Process-Molding Department
Credit account	CashCost of Goods SoldFinished GoodsWork in Process-Molding DepartmentWork in Process-Packing Department