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	$412,200	$186,600	$165,800
Direct labor	60,200	38,400	90,300
Applied overhead	74,000	40,500	115,750

Required:

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

CHART OF ACCOUNTS

Gardner Company

General 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

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.

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GENERAL JOURNAL

	DATE	ACCOUNT TITLE	POST. REF.	DEBIT	CREDIT
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