Problem Cost Journal Entries (Work shown required)

PROBLEM 2 - Process Costing Journal Entries - Mike-Loves-Chocolate, Inc, makes chocolate truffles. The company has two processing departments-Cooking and Molding. In the Cooking Department, the raw ingredients for the truffles are mixed and then cooked in special candy- making vats. In the Molding Department, the melted chocolate and other ingredients from the Cooking Department are carefully poured into molds and decorative flourishes are applied by hand. After cooling, the truffles are packed for sale. The company uses a process costing system. The T- accounts below show the flow of costs through the two departments in April: Work in Process-Cooking Debit Balance 4/1 Direct materials Direct labor Overhead Debit Balance 4/1 Transferred in Direct labor Overhead 11,000 332,000 265,000 192,000 16,000 763,000 125,000 88,000 Credit Transferred out 763,000 Work in Process-Molding Credit Transferred out 979,000 Required: Prepare journal entries showing the flow of costs through the two processing departments during April. (You will need entries for everything in the T-accounts except the beginning balances)