Reference no: EM131629452

Question - Cost of Production and Journal Entries

Franklin Paper Company manufactures newsprint. The product is manufactured in two departments, Papermaking and Converting. Pulp is first placed into a vessel at the beginning of papermaking production. The following information concerns production in the Papermaking Department for January.

Account Work in Process-Papermaking Department Account No.

Date Item Debit Credit Balance

Debit Credit

Jan. 1 Bal., 9,100 units, 80% completed 7,280 

31 Direct materials, 48,500 units 97,000 104,280 

31 Direct labor 28,780 133,060 

31 Factory overhead 16,193 149,253 

31 Goods transferred, 54,100 units ? ? 

31 Bal., 3,500 units, 90% completed ?

a1. Prepare the January journal entry for the Papermaking Department for the materials charged to production.

a2. Prepare the January journal entry for the Papermaking Department for the conversion costs charged to production. If an amount box does not require an entry, leave it blank.

a3. Prepare the January journal entry for the Papermaking Department for the completed production transferred to the Converting Department. If required, round your interim calculations to two decimal places and your final answer to the nearest dollar.

b. Determine the Work in Process-Papermaking Department January 31 balance. If required, round your interim calculations to two decimal places and your final answer to the nearest dollar.