Lutz Company produces a product in two departments: $(1)$

Mixing and $(2)$ Finishing. The company uses a process cost

accounting system. Lutz had the following transactions during

the current month:

$($a$)$ Purchased materials for $$50,000$ on account.

$($b$)$ Direct materials requisitioned for production were:

Direct materials

Mixing department $,$$$20,000$

Finishing department $14,000$

$($c$)$ Incurred labor costs of $$74,000.$

$($d$)$ Factory labor used:

Mixing department $$44,000$

Finishing department $,30,000$

$($e$)$ Manufacturing overhead is applied to the product based on

machine hours used in each department:

Mixing department $-400$ machine hours at $$30$ per

machine hour.

Finishing department $-500$ machine hours at $$20$ per

machine hour.

$($f$)$ Units costing $$56,000$ were completed in the Mixing

Department and were transferred to the Finishing Department.

$($g$)$ Units costing $$70,000$ were completed in the Finishing

Department and were transferred to finished goods.

$($h$)$ Finished goods costing $$40,000$ were sold on account for

$$55,000.$

Instructions

Prepare the journal entries to record the preceding transactions for

Lutz Company.