Review Exercise 4-7 on pages 163-164 of the text. Based on the information given for Chocolaterie de Geneve, SA, explain and prepare the journal entries showing the flow of costs through the two processing departments during April. Make sure to show your calculations for the entries. Explain some similarities and differences between job order costing and process costing. Give examples of when each method would be used.
EXERCISE 4-7 Process Costing Journal Entries [LO4-1] Chocolaterie de Geneve, SA, is located in a French-speaking canton in Switzerland. The company makes chocolate truffles that are sold in popular embossed tins. The company has two processing departmentsâ€”Cooking and Molding. In the Cooking Department, the raw ingredients for the truffles are mixed and then cooked in special candy-making vats. In the Molding Department, the melted chocolate and other ingredients from the Cooking Department are carefully poured into molds and decorative flourishes are applied by hand. After cooling, the truffles are packed for sale. The company uses a process costing system. The T-accounts below show the flow of costs through the two departments in April:
Required: Prepare journal entries showing the flow of costs through the two processing departments during April.