Lighthouse Paper Company manufactures newsprint. The product is manufactured in two departments, papermaking and converting. The pulp is first placed in a bin at the start of paper production. The following information refers to production in the Paper Manufacturing Department for the month of March:

					Balance
Date		Article	Debit	Credit	Debit	Credit
Mar.	1	Bal., 2,600 units, 35% complete			9,139
	31	Direct materials, 105,000 units	330,750		339,889
	31	Direct labour	40,560		380.449
	31	Factory overhead	54,795		435,244
	31	Goods transferred, 103,900 units		?	?
	31	Bal., 3,700 units, 80% complete			?

Required:

.

On March 31, prepare the following journal entries for the Paper Manufacturing Department:*

1.	Materials charged to production.
2.	Conversion costs charged to production.
3.	The finished production was transferred to the Converting Department.

 Determine work in process: the March 31 balance of the Paper Manufacturing Department.

Answer rating: 100% (QA)

SOLUTION To prepare the journal entries for the Paper Manufacturing Department on March 31 we need to calculate the cost of goods manufactured COGM fo... View the full answer