Basic Cost Flows

Sabor Company produces 18-ounce boxes of a wheat cereal in three departments: Mixing, Cooking, and Packaging. During August, Sabor produced 150,000 boxes with the following costs:

Mixing Department Cooking Department Packaging Department

Direct materials $225,700 $121,000 $109,000

Direct labour 35,580 29,000 65,000

Applied overhead 52,000 27,900 77,100

1.Calculate the costs transferred out of each department.

Mixing department$

Cooking department$

Packaging department$

Prepare journal entries that reflect these cost transfers.