Analyze flow of costs through inventory T-accounts (Learning Objective 1)

Healthy Start Bakery mass-produces bread using three sequential processing departments: Mixing, Baking, and Packaging. The following transactions occurred during January:

Requirements 1. Post each of these transactions to the company’s inventory T-accounts. You should set up separate T-accounts for the following:
• Raw Materials Inventory • Work in Process Inventory—Mixing Department • Work in Process Inventory—Baking Department • Work in Process Inventory—Packaging Department • Finished Goods Inventory 2. Determine the balance at month-end ip. each of the inventory accounts.
3. Assume that 3,175,000 loaves of bread were completed and transferred out of the Packaging Department during the month. What was the cost per unit of making each loaf of bread (from start to finish)?

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1. Direct materials used in the Packaging Department 2. Costs assigned to units completed and transferred out of Mixing. 3. Direct labor incurred in the Mixing Department............ 4. Beginning balance: Work in Process Inventory-Baking. $ 30,000 225,000 11,000 15,000 5. Manufacturing overhead allocated to the Baking Department 75,000 6. Beginning balance: Finished Goods Inventory...... 4,000 7. Costs assigned to units completed and transferred out of Baking................ 301,000 8. Beginning balance: Work in Process Inventory-Mixing......... 12,000 9. Direct labor incurred in the Packaging Department...... 8,000 10. Manufacturing overhead allocated to the Mixing Department. 60,000 11. Direct materials used in the Mixing Department..... 152,000 12. Beginning balance: Raw Materials Inventory. 23,000 13. Costs assigned to units completed and transferred out of Packaging ........... 381,000 14. Beginning balance: Work in Process Inventory-Packaging -15. Purchases of Raw Materials ............ 16. Direct labor incurred in the Baking Department. 8,000 170,000 4,000 17. Manufacturing overhead allocated to the Packaging Department. 18. Cost of goods sold................. 40,000 382,000