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2. Prepare the journal entries corresponding to these transfers. Also, prepare the journal entry for Grinding that reflects the costs added to the transferred-in goods received from Molding. For a compound transaction, if an amount box does not require entry, leave it blank. Transfer entries:

2. Prepare the journal entries corresponding to these transfers. Also, prepare the journal entry for Grinding that reflects the costs added to the transferred-in goods received from Molding. For a compound transaction, if an amount box does not require entry, leave it blank. Transfer entries:

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Lamont Company produced 80,000 machine parts for diesel engines. There were no beginning or ending work-in-process inventories in any department. Lamont incurred the following costs for May: | | Molding Department | Grinding Department | Finishing Department | |----------------------|--------------------|---------------------|----------------------| | **Direct materials** | $12,000 | $5,300 | $8,000 | | **Direct labor** | 10,000 | 8,800 | 12,000 | | **Applied overhead** | 17,000 | 14,000 | 12,000 | This table outlines the costs incurred in three different departments—Molding, Grinding, and Finishing—detailing the expenses for direct materials, direct labor, and applied overhead. - **Molding Department**: - Direct materials cost $12,000 - Direct labor cost $10,000 - Applied overhead cost $17,000 - **Grinding Department**: - Direct materials cost $5,300 - Direct labor cost $8,800 - Applied overhead cost $14,000 - **Finishing Department**: - Direct materials cost $8,000 - Direct labor cost $12,000 - Applied overhead cost $12,000 This financial overview helps in understanding the distribution of production costs across different departments.
Transcribed Image Text:Lamont Company produced 80,000 machine parts for diesel engines. There were no beginning or ending work-in-process inventories in any department. Lamont incurred the following costs for May: | | Molding Department | Grinding Department | Finishing Department | |----------------------|--------------------|---------------------|----------------------| | **Direct materials** | $12,000 | $5,300 | $8,000 | | **Direct labor** | 10,000 | 8,800 | 12,000 | | **Applied overhead** | 17,000 | 14,000 | 12,000 | This table outlines the costs incurred in three different departments—Molding, Grinding, and Finishing—detailing the expenses for direct materials, direct labor, and applied overhead. - **Molding Department**: - Direct materials cost $12,000 - Direct labor cost $10,000 - Applied overhead cost $17,000 - **Grinding Department**: - Direct materials cost $5,300 - Direct labor cost $8,800 - Applied overhead cost $14,000 - **Finishing Department**: - Direct materials cost $8,000 - Direct labor cost $12,000 - Applied overhead cost $12,000 This financial overview helps in understanding the distribution of production costs across different departments.
**Journal Entries for Transfers and Cost-Added Entries** 2. Prepare the journal entries corresponding to these transfers. Also, prepare the journal entry for Grinding that reflects the costs added to the transferred-in goods received from Molding. **For a compound transaction, if an amount box does not require an entry, leave it blank.** **Transfer Entries:** - There are four sets of dropdown boxes with corresponding blank fields for amounts. **Cost-Added Entry (Grinding Only):** - There are three sets of dropdown boxes with corresponding blank fields for amounts. **Explanation:** This form is designed to record accounting entries. The "Transfer Entries" section allows you to input details from one or more transfer transactions, specifying accounts and amounts related to the transfer of goods. The "Cost-Added Entry (Grinding Only)" section allows for input of specific cost adjustments related to Grinding, reflecting any additional costs incurred. Each entry should be recorded accurately, leaving amount fields blank if they are not applicable for a compound transaction.
Transcribed Image Text:**Journal Entries for Transfers and Cost-Added Entries** 2. Prepare the journal entries corresponding to these transfers. Also, prepare the journal entry for Grinding that reflects the costs added to the transferred-in goods received from Molding. **For a compound transaction, if an amount box does not require an entry, leave it blank.** **Transfer Entries:** - There are four sets of dropdown boxes with corresponding blank fields for amounts. **Cost-Added Entry (Grinding Only):** - There are three sets of dropdown boxes with corresponding blank fields for amounts. **Explanation:** This form is designed to record accounting entries. The "Transfer Entries" section allows you to input details from one or more transfer transactions, specifying accounts and amounts related to the transfer of goods. The "Cost-Added Entry (Grinding Only)" section allows for input of specific cost adjustments related to Grinding, reflecting any additional costs incurred. Each entry should be recorded accurately, leaving amount fields blank if they are not applicable for a compound transaction.
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