Question
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
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 | $412,800 | $188,100 | $165,500 |
| Direct labor | 60,400 | 37,900 | 90,400 |
| Applied overhead | 75,300 | 42,500 | 116,000 |
Required:
| 1. | Calculate the costs transferred out of each department. |
| 2. | Prepare journal entries that reflect these cost transfers. |
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 $412,800 $188,100 $165,500 Direct labor 60,400 37,900 90,400 Applied overhead 75,300 42,500 116,000 Required: 1. Calculate the costs transferred out of each department. 2. Prepare journal entries that reflect these cost transfers.
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Accounting And Finance For Non Specialists
Authors: Eddie McLaney, Peter Atrill
8th Edition
9780273778165
