The Chocolate Candy Factory’s Process Cost Accounting

Determine the general journal entry for each of the following transactions.

Use the following accounts from the manufacturing accounting system, plus use any other accounts, such as Cash, Wages Payable, etc., that you needed.

Materials Inventory

Work-in-Process Inventory - Mixing Dept.

Work-in-Process Inventory -Enrobing Dept.

Work-in-Process Inventory -Packaging Dept.

Factory Overhead – Mixing Dept.

Factory Overhead – Enrobing Dept.

Factory Overhead – Packaging Dept.

Finished Goods Inventory

Cost of Goods Sold Expense

A. Materials costing $55,000 were bought on account.

B. The Mixing Production Department used $25,000 of flour, sugar, salt, flavorings, and assorted nuts and marshmallows to make the candy centers.

C. The Mixing Production Department used $11,000 of direct labor (these employees earn wages).

D. The Mixing Production Department charges their factory overhead estimate out to the product at a rate of 50% of the cost of direct labor.

E. The Mixing Production Department had no beginning inventory and no ending inventory for this month. Record the total costs of the Mixing Department that are transferred to the chocolate Enrobing Production Department.

F. The chocolate Enrobing Production Department used $9500 of chocolate for enrobing the chocolate candy centers.

G. The chocolate Enrobing Production Department used $7500 of direct labor (these employees earn wages that has not been paid yet).

H. The chocolate Enrobing Production Department charges out their factory overhead estimate to production based on direct materials costs at a rate of 10% of those costs.

I. The chocolate Enrobing Production Department had no beginning inventory and no ending inventory for this month. Record the total costs of the chocolate Enrobing Production Department that are transferred to the Packaging Production Department.

J. The Packaging Production Department used $2,500 of direct materials.

K. The Packaging Production Department used $3,000 direct labor (these employees earn wages that has not been paid yet).

L. The Packaging Production Department charges out their factory overhead estimate to production based on direct labor hours used at a rate of 75 cents per direct labor hour. This month the Packaging Production Department used 2000 hours of direct labor.

M. The Packaging Production Department had no beginning inventory and no ending inventory for this month. Record the total costs of the Packaging Production Department transferred out to finished goods.

N. All of the candy produced this month was sold on account for $100,000. Record the two necessary journal entries.

O. The Chocolate Candy Factory sells 1.5-pound boxes of chocolates, 1-pound boxes, and half-pound boxes of chocolate candy. Determine the completed cost per pound if the factory produced 10,000 pounds of chocolate this month. Also determine their cost for a 1.5-pound box, as well as, the cost of a half-pound box of candy this month.

P. If all the manufactured product is sold (leaving zero ending inventory), then what is the dollar amount at month end that would be product cost?