Question
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
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 | $412,500 | $187,700 | $164,200 |
| Direct labor | 59,200 | 37,800 | 90,000 |
| Applied overhead | 74,100 | 41,750 | 116,000 |
Required:
| 1. | Calculate the costs transferred out of each department. |
| 2. | Prepare journal entries that reflect these cost transfers. |
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:
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 |
|
|
|
|
|
| 3 |
|
|
|
|
|
| 4 |
|
|
|
|
|
| 5 |
|
|
|
|
|
| 6 |
|
|
|
|
|
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Crash Course Medical Research Audit And Teaching The Essentials For Career Success
Authors: Amit Kaura MSc BSc MB ChB MRCP AFHEA AMInstLM, Darrel Francis, Shreelata T Datta MD MRCOG LLM MBBS BSc, Philip Xiu MA MB BChir MRCP MRCGP MScClinEd FHEA MAcadMEd RCPathME
2nd Edition
0702073784, 978-0702073786
