Problem #1

Snyder Home Paint produces paints and sells them in gallons. Snyder Home Paint have two departments: Base and Finishing. During the month Snyder Home Paint had the following activity:

1. Requested by requisition of Raw Material to use in production in both departments. Base $851,000 and Finishing $629,000.
2. Incurred Direct Labor Costs: Base $330,000 and Finishing $270,000.
3. Manufacturing Overhead Applied: Base $665,000 and Finishing $405,000.
4. Transfer white paint base from Base Department to Finishing Department, $1,850,000.
5. Transfers finished, ready to sell from Finishing Department to Finished Goods, $3,200,000.

Instructions

1. Prepare the journal entries.
2. Prepare a cost reconciliation schedule.