Instructions Gardner Company produces 18-ounce boxes of a wheat cereal in three departments: mixing, cooking, and packaging. During August, Gardner produced 150,000 boxes with the following costs: Mixing Cooking Department Packaging Department Department Direct materials $413,000 $187,900 $164,800 Direct labor 60,600 37,500 89,500 Applied 74,900 40,750 115,000 overhead Required: 1. Calculate the costs transferred out of each department. 2. Prepare journal entries that reflect these cost transfers. Chart of Accounts CHART OF ACCOUNTS Gardner Company General Ledger ASSETS REVENUE 110 Cash 410 Sales 120 Accounts Receivable 130 Raw Materials 142 Work in Process-Cooking 143 Work in Process-Micing 144 Work in Process Packaging 150 Overhead Control 160 Finished Goods 180 Accumulated Depreciation EXPENSES 510 Cost of Goods Sold 520 Insurance Expense 530 Wages Expense 540 Supplies Expense 550 Utilities Expense 560 Depreciation Expense 590 Miscellaneous Expense LIABILITIES 210 Accounts Payable 220 Wages Payable 230 Utilities Payable 240 Lease Payable 250 Other Payables EQUITY 310 Common Stock 320 Retained Earnings Transferred Costs 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: Journal 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. PAGE 15 GENERAL JOURNAL DATE ACCOUNT TITLE POST REE DEBIT CREDIT 1 2 3 4 5 6