Exercise 4-1 (Algo) Process Costing Journal Entries [LO 4-1]

Quality Brick Company produces bricks in two processing departmentsMolding and Firing. Information relating to the company's operations in March follows:

1. Raw materials used in production: Molding Department, $29,100; and Firing Department, $5,200.
2. Direct labor costs incurred: Molding Department, $17,200; and Firing Department, $5,700.
3. Manufacturing overhead was applied: Molding Department, $22,100; and Firing Department, $36,500.
4. Unfired, molded bricks were transferred from the Molding Department to the Firing Department. According to the company's process costing system, the cost of the unfired, molded bricks was $67,500.
5. Finished bricks were transferred from the Firing Department to the finished goods warehouse. According to the company's process costing system, the cost of the finished bricks was $108,200.
6. Finished bricks were sold to customers. According to the company's process costing system, the cost of the finished bricks sold was $103,700.

Required:

Prepare journal entries to record items (a) through (f) above.(If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

View Transaction

• Record issuance of raw materials for use in production.
• Record direct labor costs incurred.
• Record entry to apply manufacturing overhead.
• Record transfer of unfired, molded bricks from the Molding Department to the Firing Department.
• Record transfer of finished bricks from the Firing Department to the finished goods warehouse.
• Record cost of goods sold.

• Note := journal entry has been entered

Journal entry worksheet

Record issuance of raw materials for use in production.

Record direct labor costs incurred.

Record entry to apply manufacturing overhead.

Record transfer of unfired, molded bricks from the Molding Department to the Firing Department.

Record transfer of finished bricks from the Firing Department to the finished goods warehouse.

Record cost of goods sold.

Note: Enter debits before credits.

Transaction General Journal Debit Credit

Entry for General Journal

• No journal entry required
• Cash
• Cost of goods sold
• Finished goods
• Manufacturing overhead
• Raw materials
• Salaries and wages payable
• Work in processFiring Department
• Work in processMolding Department