Question

OBJECTIVE
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Exercise 6-11 Journal Entries Sharma Company has three process departments: Mixing, Encapsulating, and Bottling. At the beginning of the year, there were no work-in-process or finished goods inventories. The following data are available for the month of July:
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EXCEL
Manufacturing Ending Work in Department
Costs Added*
Process Mixing
$86,400
$21,600 Encapsulating
79,200
18,000 Bottling
72,000
3,600 *Includes only the direct materials, direct labor, and the overhead used to process the partially finished goods received from the prior department. The transferred-in cost is not included.
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Chapter 6 Process Costing
Required:
1. Prepare journal entries that show the transfer of costs from one department to the next
(including the entry to transfer the costs of the final department). 2. Prepare T-accounts for the entries made in Requirement 1. Use arrows to show the flow of costs.

Answer 1

The journal entry that show the transfer of costs from one department to the next will be:

1. Debit Work in process - $64800

Credit Work in process - Mixing $64800

(To transfer record of cost) ($86400 - $21600)

2 Debit Work in process - Bottling - $162000

Credit - Work in process Encapsulating - $162000

(To record transfer of cost)($64800 + $79200 + $18000) = $162000

3. Debit finished goods. $2304000

Credit work in process - bottling - $230400

(To record finished goods inventory)($162000 + $72000 - $3600)

What are journal entries?

It should be noted that journal entries simply means the record of the business transactions on the accounting records of the business.

In this case, the above is the journal entries that show the transfer of costs from one department to the next including the entry to transfer the costs of the final department.

Learn more about journal entries on:

brainly.com/question/14279491

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