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Amara Paint Company produces exterior latex paint, which it sells in one gallon containers. The company has two processing departments ---Base Fab and Finishing. White
Amara Paint Company produces exterior latex paint, which it sells in one gallon containers. The company has two processing departments ---Base Fab and Finishing. White paint, which is used as a base for all the company's paints, is mixed from raw ingredients in the Base Fab Department. Pigments are then added to the basic white paint, the pigmented paint is squirted under pressure into one gallon containers, and the containers are labelled and packed for shipping in the Finishing Department Information relating to the company's operations for April follows: a . Issued raw materials for use in production: Base Fab Department, $851,000; and Finishing Department, 5629,000. b. Incurred direct labour costs: Base Fab Department, $330,000; and Finishing Department, $270,000. c. Applied manufacturing overhead cost: Base Fab Department, $665,000; and Finishing Department. $415,000. d. Transferred basic white paint from the Base Fab Department to the Finishing Department, $1,850,000. e Transferred paint that had been prepared for shipping from the Finishing Department to Finished Goods, $3,200,000, Required: Prepare journal entries to record items (a) through (e) above
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