Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Gonzalez Tortilla Corporation produces tortillas in large batches and uses a process costing system. Three departmentsMixing, Rolling, and Packagingare involved in the production process. Gonzalez
Gonzalez Tortilla Corporation produces tortillas in large batches and uses a process costing system. Three departmentsMixing, Rolling, and Packagingare involved in the production process. Gonzalez Tortilla has the following transactions:
- Direct materials totaling $25,000$7,500 for the Mixing department, $6,250 for the Rolling department, and $11,250 for the Packaging departmentare requisitioned and placed in production.
- Each production department incurs the following direct labor costs (wages payable):
Mixing | $3,125 |
Rolling | $5,750 |
Packaging | $2,750 |
- Manufacturing overhead costs are applied to each department as follows:
Mixing | $12,500 |
Rolling | $8,750 |
Packaging | $9,375 |
- Products with a cost of $6,875 are transferred from the Mixing department to the Rolling department.
- Products with a cost of $8,000 are transferred from the Rolling department to the Packaging department.
- Products with a cost of $11,375 are completed and transferred from the Packaging department to the finished goods warehouse.
- Products with a cost of $10,375 are sold to customers.
Perform the following steps for each transaction:
- Prepare a journal entry to record the transaction.
- Summarize the flow of costs through T-accounts (no need to include T-accounts for raw materials inventory, wages payable, or manufacturing overhead). Assume that there are no beginning balances in the work-in-process inventory, finished goods inventory, and cost of goods sold accounts.
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