I Entries for Flow of Factory Costs for Process Costing Keoni 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 $370,400, $129,600, and $85,200, respectively. Also, work in process in the Refining Department at the beginning of the period totaled $20,700, and work in process at the end of the period totaled $25,600. 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 Materials 2. Work in Process-Refining Department Wages Payable 3. Work in Process-Refining Department Factory Overhead-Refining Department Feedback ✓ Check My Work ✓ 370,400 Work in Process-Sifting Department Work in Process-Refining Department 129,600 ✓ 85,200 370,400 129,600 85,200 ✓ Remember that in this department both materials and conversion costs are being added to the units before they are transferred out. 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.
I Entries for Flow of Factory Costs for Process Costing Keoni 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 $370,400, $129,600, and $85,200, respectively. Also, work in process in the Refining Department at the beginning of the period totaled $20,700, and work in process at the end of the period totaled $25,600. 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 Materials 2. Work in Process-Refining Department Wages Payable 3. Work in Process-Refining Department Factory Overhead-Refining Department Feedback ✓ Check My Work ✓ 370,400 Work in Process-Sifting Department Work in Process-Refining Department 129,600 ✓ 85,200 370,400 129,600 85,200 ✓ Remember that in this department both materials and conversion costs are being added to the units before they are transferred out. 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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 Costing
Keoni 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 $370,400, $129,600, and $85,200, respectively.
Also, work in process in the Refining Department at the beginning of the period totaled $20,700, and work in process at the end of the period totaled $25,600.
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
Materials
2. Work in Process-Refining Department
Wages Payable
3. Work in Process-Refining Department
Factory Overhead- fining Department
Feedback
✓
✓
Work in Process-Sifting Department
Work in Process-Refining Department
370,400✔
129,600✔
85,200 ✔
370,400
129,600
85,200
Check My Work
Remember that in this department both materials and conversion costs are being added to the units before they are transferred out.
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.
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