Question

"Guardino Company manufactures a single product by a continuous process, involving three production departments. The records indicate that direct materials, direct labor, and applied factory overhead for Department 1 were $100,000, $125,000, and $150,000, respectively. The records further indicate that direct materials, direct labor, and applied factory overhead for Department 2 were $50,000, $60,000, and $70,000, respectively. In addition, work in process at the beginning of the period for Department 1 totaled $75,000, and work in process at the end of the period totaled $60,000."

Prepare the journal entry to record the flow of cost in department 1 during the period of factory.

Answer 1

Answer:

See the explanation below.

Explanation:

Guardino Company

Journal Entries

Details                                            Dr ($)                    Cr ($)        

Work in P - Cost flow                  375,000

Direct materials                                                         100,000

Direct labor                                                                125,000

Applied factor overhead                                          150,000

To record the flow of cost in department 1.                                

Flow of cost                               375,000

Beginning work in process        75,000

Ending work in process                                           60,000

Goods transferred to Dept 2                                 390,000

To record cost of goods transferred to Department 2