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Shown below is a list of costs incurred by candle Lite Inc. for the month of May. The production process in Candle Lite involves three

Shown below is a list of costs incurred by candle Lite Inc. for the month of May. The production process in Candle Lite involves three departments (mixing, moulding and packaging). Prepare the journal entries to record the costs of direct materials, direct labor and manufacturing overhead for the packaging department. Also prepare the journal entries related to costs transferrred into and out of the packaging department.

Direct materials put into production 30,000

Mixing -55%

Moulding-15%

Packaging-30%

Direct labor cost incurred but not paid 15,000

Mixing -40%

Moulding -35%

Packaging-25%

Allocation of Manufacturing overhead

Mixing 5,000

Moulding 8.800

Packaging 9,000

Cost Transferred from one department to the next

Mixing to Moulding 6,000

Mounding to Packaging 10,000

Packaging to Finished goods inventory 5,000

Prepare Journal entries for the packing department.

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