Sabor Company produces 500-gram boxes of an oat cereal. Sabor uses three departments: mixing, cooking, and packaging. During the month of August, Sabor produced 150,000 boxes with the following costs:

Required:
1. Using the weighted average method, calculate the costs transferred out of each department.
2. Prepare journal entries that reflect these cost transfers.

Transcribed Image Text:

Mixing Department Cooking Department Packaging Department Direct materials Direct labour $225,000 $75,000 S60,000 45,000 67,500 22,500 Applied overhead