Reference no: EM132619794
Cost flows in process costing: journal entries: manufacturer Concrete Solutions manufactures concrete paving bricks. The processing takes place in two sequential departments. The following cost data relate to the month of January:
Pouring Department Finishing Department
p.d= pouring department
f.d = Finishing department
Direct material entered into production
Pouring department:$ 210 000 Finishing department department :$ 75 000
Direct labour
p.d:1020 000 f.d:840 000
Manufacturing overhead
p.d: 2 040 000 F.D :1 260 000
Cost of goods completed and transferred out
p.d 2 700 000 F.D1 200 000
- Cost of goods transferred to Finishing Department.
- Cost of goods transferred to finished goods
Required:
Problem 1: Prepare journal entries to record the following events:
01. Incurrence of costs for direct material, direct labour, and manufacturing overhead costs in the Pouring Department.
02. Transfer of goods from the Pouring Department to the Finishing Department.
03. Incurrence of costs for direct material, direct labour, and manufacturing overhead costs in the Finishing Department.
04. Transfer of goods from the Finishing Department to finished goods inventory.