ACCOUNT Work in Process-Papermaking Department ACCOUNT NO. Balance Debit Credit Debit Credit Date Item Mar. 1 Bal., 2,600 units, 35% completed Direct materials, 105,000 units 9,139 31 330,750 40,560 54,795 339,889 380,449 Direct labor 31 31 Factory overhead 31 Goods transferred, 103,900 units 31 Bal., 3,700 units, 80% completed 435,244

FINANCIAL ACCOUNTING
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Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Lighthouse 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 March:

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a. Prepare the following March journal entries for the Papermaking Department:
1. The materials charged to production
2. The conversion costs charged to production
3. The completed production transferred to the Converting Department
b. Determine the Work in Process—Papermaking Department March 31 balance.

ACCOUNT Work in Process-Papermaking Department
ACCOUNT NO.
Balance
Debit
Credit
Debit
Credit
Date
Item
Mar. 1
Bal., 2,600 units, 35% completed
Direct materials, 105,000 units
9,139
31
330,750
40,560
54,795
339,889
380,449
Direct labor
31
31
Factory overhead
31
Goods transferred, 103,900 units
31
Bal., 3,700 units, 80% completed
435,244
Transcribed Image Text:ACCOUNT Work in Process-Papermaking Department ACCOUNT NO. Balance Debit Credit Debit Credit Date Item Mar. 1 Bal., 2,600 units, 35% completed Direct materials, 105,000 units 9,139 31 330,750 40,560 54,795 339,889 380,449 Direct labor 31 31 Factory overhead 31 Goods transferred, 103,900 units 31 Bal., 3,700 units, 80% completed 435,244
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