Hawkeye Bakery Company manufactures cookies. Materials are placed in production in the Baking Department and after processing are transferred to the Packing Department, where packing materials are added. The finished products emerge from the Packing Department.

There were no inventories of work in process at the beginning or at the end of August 2006. Finished goods inventory at August 1 was 900 cases of cookies at a total cost of $40,500.

Transactions related to manufacturing operations for August are summarized as follows:

a. Materials purchased on account, $504,000.

b. Materials requisitioned for use: Baking Department, $399,600 ($387,000 entered directly into the product); Packing Department, $90,000 ($81,000 entered directly into the product).

c. Labor costs incurred: Baking Department, $175,500 ($163,800 entered directly into the product); Packing Department, $131,760 ($126,000 entered directly into the product).

d. Miscellaneous costs and expenses incurred on account: Baking Department, $18,540; Packing Department, $7,740.

e. Depreciation charged on fixed assets: Baking Department, $27,900; Packing Department, $13,140.

f. Expiration of various prepaid expenses: Baking Department, $4,320; Packing Department, $1,980.

g. Factory overhead applied to production, based on machine hours: $75,600 for Baking and $37,800 for Packing.

h. Output of Baking Department: 19,800 cases.

i. Output of Packing Department: 19,800 cases of cookies.

j. Sales on account: 20,160 cases of cookies at $90. Credits to the finished goods account are to be made according to the first-in, first-out method.

Instructions

Journalize the entries to record the transactions, identifying each by letter. Include as an explanation for entry (j) the number of cases and the cost per case of cookies sold.