Lutz Company produces a product in two departments: (1) Mixing and (2) Finishing. The company uses a process cost accounting system la) (b) 14.000 (c) (d) Purchased raw materials for $50,000 on account. Raw materials requisitioned for production were: Direct materials Mbeing department $20,000 Finishing department Incurred tabor costs of $74,000. Factory labor used: Mixing department $44,000 Finishing department 30,000 Manufacturing over hond 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. Units costing $56,000 were completed in the Mixing Department and were transferred to the Finishing Department Units costing $70,000 were completed in the Finishing Department and were transferred to finished goods. Finished goods costing $10,000 were sold on account for $55,000 te) (8) th) No. Account Tities and Explanation Debat Credit (a) Purchase of raw materials on account () To record materials used in production 9 (To recordarrollability . To an actory aborto production te) To zigoverhead to process THE HI DI To record transfer of units to the Finishing Desartment (To record transfer of units to finished goods (hi) To record sale of finished goods an account (9) ( To record cost of goods sold