Cost of Production and Journal Entries Franklin Paper Company manufactures

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%u2014Papermaking Department

Account No.

Date

Item

Debit

Credit

Balance

Debit

Credit

Jan.

1

Bal. 4900 units 10% completed

16758

31

Direct materials 26100 units

49590

66348

31

Direct labor

14840

81188

31

Factory overhead

8352

89540

31

Goods transferred 29100 units

?

?

31

Bal. 1900 units 20% completed

?

a. Prepare the January journal entry for the Papermaking Department for the completed production transferred to the Converting Department.

B. Determine the Work in Process%u2014Papermaking Department January 31
balance.

$