cost of production and journal entries franklin paper company manufactures newsprin 381199

Cost of Production and Journal Entries Franklin 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 January. Account Work in Process”Papermaking Department Account No. Date Item Debit Credit Balance Debit Credit Jan. 1 Bal., 6,700 units, 80% completed 5,092 31 Direct materials, 35,700 units 67,830 72,922 31 Direct labor 18,840 91,762 31 Factory overhead 10,592 102,354 31 Goods transferred, 39,900 units ? ? 31 Bal., 2,500 units, 90% completed ? Hide Hint(s) a1. Prepare the January journal entry for the Papermaking Department for the materials charged to production. Hide Feedback Partially Correct Check My Work Feedback Materials are added to the Papermaking work in process and subtracted from the materials inventory. Hide a2. Prepare the January journal entry for the Papermaking Department for the conversion costs charged to production. For a compound transaction, if an amount box does not require an entry, leave it blank or enter “0”. Hide Feedback Partially Correct Check My Work Feedback Increase the Papermaking work in process and a liability for the labor costs. Decrease the Factory Overhead. Hide a3. Prepare the January journal entry for the Papermaking Department for the completed production transferred to the Converting Department. Hide Feedback Incorrect Check My Work Feedback Increase one inventory account and decrease another. b. Determine the Work in Process”Papermaking Department January 31 balance. $ Hide Feedback