Chapter 5, Problem 5.45BE

Record journal entries (Learning Objective 4)

Record the following process costing transactions in the general journal:

1. a. Purchase of raw materials on account, $9,900
2. b. Requisition of direct materials to:
3. Assembly Department, $4,500
4. Finishing Department, $2,200
5. c. Incurrence and payment of manufacturing labor, $10,900 (these costs should be debited to WIP Inventory—Assembly)
6. d. Incurrence of manufacturing overhead costs (unpaid):
7. Property taxes—plant, $1,200
8. Utilities—plant, $4,300
9. Insurance—plant, $1,000
10. Depreciation—plant, $3,600
11. e. Assignment of conversion costs to the Assembly Department:
12. Direct labor, $5,200
13. Manufacturing overhead, $2,200
14. f. Assignment of conversion costs to the Finishing Department:
15. Direct labor, $4,400
16. Manufacturing overhead, $6,400
17. g. Cost of goods completed and transferred out of the Assembly Department to the Finishing Department, $10,200
18. h. Cost of goods completed and transferred out of the Finishing Department into Finished Goods Inventory, $15,600