Cost of Production and Journal Entries

Cost of Production and Journal Entries

Lighthouse Paper Company manufactures newsprint. The product is manufactured in two departments, Papermaking and Converting. Pulp is first placed into a vessel at the beginning of papermaking production. The following information concerns production in the Papermaking Department for March:

ACCOUNT Work In Process-Papermaking Department

	Balance
Date	Item	Debit	Credit	Debit	Credit
Mar.	1	Bal., 2,600 units, 35% completed			9,139
	31	Direct materials, 105,000 units	330,750		339,889
	31	Direct labor	40,560		380,449
	31	Factory overhead	54,795		435,244
	31	Goods transferred, 103,900 units		?	?
	31	Bal., 3,700 units, 80% completed			?

	Required:
A.	On March 31, prepare the following journal entries for the Papermaking Department:*1.The materials charged to production.2.The conversion costs charged to production.3.The completed production transferred to the Converting Department.
	B. Determine the Work in Process—Papermaking Department March 31 balance.