Process Costing System-Journal Entries

question 51

Essay

Process costing system-journal entries
Joyce Industries uses a process costing system.All of the company's manufacturing activities take place in a single processing department.There was no beginning inventory in May.During the month,$60,000 of materials were added and $40,000 of labor and $75,000 of overhead costs were charged to work in process.The entire work in process inventory of 20,000 units was completed and transferred to finished goods.Of these 20,000 units,15,000 were sold on account at $14 per unit.
In the space provided,prepare a general journal entry to summarize each of the following categories of transactions for the month of May (you may omit explanations):
(a.)The recording of manufacturing costs applied to production (use a single journal entry).
(b.)The transfer of completed units from work in process to the finished goods warehouse.
(c.)The sale of 15,000 units manufactured during the month and the related cost of goods sold.

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Definitions:

Multiple Products

Refers to an array of different items or goods that a business manufactures or sells.

Lot Sizes

The quantity of items that are processed, produced, or purchased at one time.

Cycle Inventory

Inventory that is held or maintained in the supply chain to facilitate the regular, ongoing production and distribution of goods.

Flow Time

The total time it takes for a product to move through a production process, from start to finish.