Gardner Company produces 18-ounce boxes of a wheat cereal in three departments: mixing, cooking, and packaging. During August, Gardner produced 125,000 boxes with the following costs:

	Mixing	Cooking	Packaging
	Department	Department	Department
Direct materials	$413,400	$188,200	$165,800
Direct labor	60,800	37,500	89,900
Applied overhead	75,000	40,250	115,250

Required:

1.	Calculate the costs transferred out of each department.
2.	Prepare journal entries that reflect these cost transfers.