Basic Cost Flows Instructions Chart of Accounts Transferred Costs Journal Instructions Gardner Company produces 18-ounce boxes of a wheat cereal in three departments: mixing, cooking, and packaging. During August, Gardner produced 100,000 boxes with the following costs: Mixing Cooking Packaging Department Department Department Direct materials Direct labor $412.200 60,200 $186,600 $165,800 38,400 90,300 Applied overhead 74,000 40,500 115,750 Required: 1. Calculate the costs transferred out of each department. 2. Prepare journal entries that reflect these cost transfers. Basic Cost Flows Instructions Chart of Accounts Transferred Costs Journal Chart of Accounts CHART OF ACCOUNTS Gardner Company General Ledger ASSETS 110 Cash 120 Accounts Receivable 130 Raw Materials 142 Work in Process-Cooking 143 Work in Process-Mixing 144 Work in Process-Packaging 150 Overhead Control 160 Finished Goods 180 Accumulated Depreciation REVENUE 410 Sales EXPENSES 510 Cost of Goods Sold 520 Insurance Expense 530 Wages Expense 540 Supplies Expense 550 Utilities Expense 560 Depreciation Expense 590 Miscellaneous Expense LIABILITIES 210 Accounts Payable 220 Wages Payable 230 Utilities Payable 240 Lease Payable 250 Other Payables Instructions Chart of Accounts Transferred Costs Journal Chart of Accounts 110 Cash 120 Accounts Receivable, 130 Raw Materials 142 Work in Process-Cooking 143 Work in Process-Mixing 144 Work in Process-Packaging 150 Overhead Control 160 Finished Goods 180 Accumulated Depreciation 410 Sales EXPENSES 510 Cost of Goods Sold 520 Insurance Expense 530 Wages Expense 540 Supplies Expense 550 Utilities Expense 560 Depreciation Expense 590 Miscellaneous Expense LIABILITIES 210 Accounts Payable 220 Wages Payable 230 Utilities Payable 240 Lease Payable 250 Other Payables EQUITY 310 Common Stock 320 Retained Earnings Basic Cost Flows Instructions Transferred Costs Chart of Accounts Transferred Costs Journal 1. Calculate the costs transferred out of each department. (a) Costs transferred out of the Mixing Department: $ (b) Costs transferred out of the Cooking Department: (c) Costs transferred out of the Packaging Department: $ Basic Cost Flows Instructions Chart of Accounts Transferred Costs Journal Journal 2. Prepare journal entries on Aug. 31 that reflect these cost transfers. Refer to the Chart of Accounts for the exact wording of account titles PAGE 15 GENERAL JOURNAL DATE ACCOUNT TITLE POST REF DEBIT CREDIT 1 2