Entries for Materials Cost Flows in a Process Cost System
The Hershey Foods Company manufactures chocolate confectionery products. The three largest raw materials are cocoa, sugar, and dehydrated milk. These raw materials first go into the Blending Department. The blended product is then sent to the Molding Department, where the bars of candy are formed. The candy is then sent to the Packing Department, where the bars are wrapped and boxed. The boxed candy is then sent to the distribution center, where it is eventually sold to food brokers and retailers.
Show the accounts debited and credited for each of the following business events:
a. Materials used by the Blending Department.
| DebitCredit | Cost of Goods SoldFinished GoodsWork in Process-Blending DepartmentWork in Process-Molding DepartmentWork in Process-Packing Department |
| DebitCredit | Accounts PayableCost of Goods SoldFinished GoodsMaterials-CocoaWork in Process-Molding Department |
| DebitCredit | CashCost of Goods SoldFinished GoodsMaterials-SugarWork in Process-Molding Department |
| DebitCredit | CashCost of Goods SoldFinished GoodsMaterials-Dehydrated MilkWork in Process-Packing Department |
b. Transfer of blended product to the Molding Department.
| DebitCredit | Accounts PayableCost of Goods SoldFinished GoodsWork in Process-Molding DepartmentWork in Process-Packing Department |
| DebitCredit | Accounts PayableCost of Goods SoldFinished GoodsWork in Process-Blending DepartmentWork in Process-Packing Department |
c. Transfer of chocolate to the Packing Department.
| DebitCredit | Accounts PayableCost of Goods SoldFinished GoodsMaterialsWork in Process-Packing Department |
| DebitCredit | CashFinished GoodsMaterialsWork in Process-Blending DepartmentWork in Process-Molding Department |
d. Transfer of boxed chocolate to the distribution center.
| DebitCredit | Cost of Goods SoldFinished GoodsMaterialsWork in Process-Blending DepartmentWork in Process-Molding Department |
| DebitCredit | Accounts PayableCashCost of Goods SoldWork in Process-Blending DepartmentWork in Process-Packing Department |
e. Sale of boxed chocolate.
| DebitCredit | Accounts PayableCost of Goods SoldMaterialsWork in Process-Packing DepartmentWork in Process-Molding Department |
| DebitCredit | Accounts PayableCashFinished GoodsWork in Process-Molding DepartmentWork in Process-Packing Department |