L EX 2001 Entries for Materials Cost Flows in a The Hershey

L. EX 20-01 Entries for Materials Cost Flows in a The Hershey Company manufactures chocolate lending Department. The biended cenfectionery products. The theee largest raw materials are cocoa, suger, and dehydrated mik. These rse materials est po ine product is then sent to the Moidling Department, where the bars of candy ane famed. The candy is then sent to the Packing Department, wheret are wrapped and bexed. The baxed candy is then sent to the distritution center, where t is eventually sole to food brokers and retailers Show the accounts debited and credited for each of the following business events: a. Matenials used by the Blending Department Credit account Credt account Credit account b. Transfer of blended groduct to the Molkding Department Debit account Credit account c. Transfer of chocolate to the Packing Department. Credit account d. Transfer of boxed chocclabe to the distribution center Debit account - Credit account of bexed checolate. Cred account 2. EX.20-0S.ALGO(Algorithmic) The Converting Department of Soft Touch Towel and Tisue Compiyhad seo unts-wo. nances at tbe beli ring of ne-ed ?ch ate ,s ene\" ao be pret 11.600 unes were completedand transferred to the Packing Departnere. There wen\' 640 unts r, process at the end of the pered, which-re 60% comp.t. besa nmak vn into the process at the beginning of preduction materials and conversion costs. If an amount is nero, enter in o Determine the number of equivalent units of production with respect to direct Soft Touch Towel and Tissue Company Number of Equivalent Units of Production Directat units Equivalent whole Units Equivalent Enventery in process, beginning Transferred to Packing Depertment teventory in process, ending . EX 20.07 ALGO(Alporithmic the Baking Department for f Karch Ail direct materials are placed in process at the begianing of production cencens producsion in the Baking Department for March Dateem ,500 units, 3/5 completed ?Directmaterwn, 135.000 uniti 256,500 69,420 I Direct laber

Solution

Journal Entries

a. Materials used by the blending department

Debit: Work-In-Process-Blending Department
Credit: Raw Materials-Cocoa
Credit: Raw Materials-Sugar
Credit: Raw Materials-Dehydrated

b. Transfer of Blended product to the Molding department

Debit: Work-In-Process-Molding Department
Credit: Work-In-Process-Blending Department

c. Transfer of Blended product to the Packing department

Debit: Work-In-Process-Packing Department
Credit: Work-In-Process-Molding Department

d. Transfer of Blended product to the Distribution Center

Debit: Finnished Goods
Credit: Work-In-Process-Packing Department

e. Sale of boxed chocolate

Debit: Cash
Credit: Sales Revenue