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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 | $411,700 | $187,200 | $165,100 |
Direct labor | 59,700 | 37,800 | 90,800 |
Applied overhead | 75,400 | 40,750 | 115,750 |
Required:
1. | Calculate the costs transferred out of each department. |
2. | Prepare journal entries that reflect these cost transfers. |
Gardner CompanyGeneral 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 |
LIABILITIES | |
---|---|
210 | Accounts Payable |
220 | Wages Payable |
230 | Utilities Payable |
240 | Lease Payable |
250 | Other Payables |
EQUITY | |
---|---|
310 | Common Stock |
320 | Retained Earnings |
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 |
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