Entries for Flow of Factory Costs for Process Cost System Radford Inc. manufactures a sugar product by a continuous process, involving three production departments-Refining, Sifting, and Packing. Assume that records indicate that direct materials, direct labor, and applied factory overhead for the fir department, Refining, were $527,700, $184,700, and $121,400, respectively. Also, work in process in the Refining Department at the beginning of the period totaled $29,600, and work in process at the end of the period totaled $36,400. a. Journalize the entries to record the flow of costs into the Refining Department during the period for (1) direct materials, (2) direct labor, and (3) factory overhead. If an amount box does not require an entry, leave it blank. 1. Work in Process-Refining Department. ✓ 284,500 X Materials 2. Work in Process-Refining Department Wages Payable 3. Work in Process-Refining Department Factory Overhead-Refining Department Feedback ✓ Feedback 99.600 X Feedback 65,400 X Check My Work Partially correct 284,500 X Check My Work Remember that in this department both materials and conversion costs are being added to the units before they are transferred out. 99,600 X b. Journalize the entry to record the transfer of production costs to the second department, Sifting. If an amount box does not require an entry, leave it blank. Work in Process-Sifting Department 445,800 X Work in Process-Refining Department 65,400 X Check My Work Costs accumulate as units are transferred from one department to the next. The costs need to be transferred from one department to the next so the units total cost is properly reflected finished goods inventory. 445,800 X
Entries for Flow of Factory Costs for Process Cost System Radford Inc. manufactures a sugar product by a continuous process, involving three production departments-Refining, Sifting, and Packing. Assume that records indicate that direct materials, direct labor, and applied factory overhead for the fir department, Refining, were $527,700, $184,700, and $121,400, respectively. Also, work in process in the Refining Department at the beginning of the period totaled $29,600, and work in process at the end of the period totaled $36,400. a. Journalize the entries to record the flow of costs into the Refining Department during the period for (1) direct materials, (2) direct labor, and (3) factory overhead. If an amount box does not require an entry, leave it blank. 1. Work in Process-Refining Department. ✓ 284,500 X Materials 2. Work in Process-Refining Department Wages Payable 3. Work in Process-Refining Department Factory Overhead-Refining Department Feedback ✓ Feedback 99.600 X Feedback 65,400 X Check My Work Partially correct 284,500 X Check My Work Remember that in this department both materials and conversion costs are being added to the units before they are transferred out. 99,600 X b. Journalize the entry to record the transfer of production costs to the second department, Sifting. If an amount box does not require an entry, leave it blank. Work in Process-Sifting Department 445,800 X Work in Process-Refining Department 65,400 X Check My Work Costs accumulate as units are transferred from one department to the next. The costs need to be transferred from one department to the next so the units total cost is properly reflected finished goods inventory. 445,800 X
Chapter1: Financial Statements And Business Decisions
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Concept explainers
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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Transcribed Image Text:Entries for Flow of Factory Costs for Process Cost System
Radford Inc. manufactures a sugar product by a continuous process, involving three production departments-Refining, Sifting, and Packing. Assume that records indicate that direct materials, direct labor, and applied factory overhead for the first
department, Refining, were $527,700, $184,700, and $121,400, respectively. Also, work in process in the Refining Department at the beginning of the period totaled $29,600, and work in process at the end of the period totaled $36,400.
a. Journalize the entries to record the flow of costs into the Refining Department during the period for (1) direct materials, (2) direct labor, and (3) factory overhead. If an amount box does not require an entry, leave it blank.
1. Work in Process-Refining Department.
✓
284,500 X
Materials
2. Work in Process-Refining Department
Wages Payable
Feedback
✓
3. Work in Process-Refining Department -✓
Factory Overhead-Refining Department
Feedback
✓
- ✓
Feedback
Check My Work
Partially correct
V
99,600 X
65,400 X
284,500 X
Check My Work
Remember that in this department both materials and conversion costs are being added to the units before they are transferred out.
99,600 X
b. Journalize the entry to record the transfer of production costs to the second department, Sifting. If an amount box does not require an entry, leave it blank.
Work in Process-Sifting Department
✓
445,800 X
Work in Process-Refining Department
65,400
Check My Work
Costs accumulate as units are transferred from one department to the next. The costs need to be transferred from one department to the next so the units total cost is properly reflected finished goods inventory.
445,800 X
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