Radford Inc. manufactures a sugar product by a continuous process, involving three production departments-Refining, Sifting, and Packing. Assume that records indicate that direct materials, direct labor, and applied factory overhead for the first department, Refining, were $388,000, $141,000, and $96,800, respectively. Also, work in process in the Refining Department at the beginning of the period totaled $29,800, and work in process at the end of the period totaled $30,000.
Required:(1) On September 30, journalize the entry to record the flow of costs into the Refining Department during the period for direct materials.
(2) On September 30, journalize the entry to record the flow of costs into the Refining Department during the period for direct labor.

Explanation:

The Journal entry is shown below:-

1. Refining work-in-progress            $388,000

            To Materials                                  $388,000

(Being material for Refining work-in-progress is recorded)

2. Refining work-in-progress            $141,000

            To wages payable                         $141,000

(Being wages payable for Refining work-in-progress is recorded)

3. Refining work-in-progress              $96,800

            To factory overhead refining           $96,800

(Being factory overhead refining for Refining work-in-progress is recorded)

4. Sifting work-in-progress                  $625,600

             To Refining work-in-progress          $625,600

(Being Transferred to shifting is recorded)

Working note :-

Opening balance = $29,800

Material =  $388,000

Wages payable = $141,000

Factory overhead = $96,800

Total = $655,600

Closing balance = $30,000

Transferred to shifting = Total - Closing balance

= $655,600 - $30,000

= $625,600    

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