BNC Company produces a product in two departments: (1) mixing and (2) finishing. the company uses a process cost accounting system.Accounting TransactionsNo.Transactions(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 $55,000.Prepare the journal entries to record the preceding transactions for BNC Company.List debit transactions first and then list credit transactions.General JournalsNo.Account Titles and ExplanationDebit ($)Credit ($)(e)work in process inventory - mixing to assign overhead to process (f) to record transfer of units to the finishing department (g) to record transfer of units to finished goods (h) to record the sale of goods on account to record cost of goods sold

The overhead is applied to the production on the basis of predetermined overhead rate. The direct…

Answered: BNC Company produces a product in two…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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BNC Company produces a product in two departments: (1) mixing and (2) finishing. the company uses a process cost accounting system.

Accounting Transactions

No.	Transactions
(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.

Prepare the journal entries to record the preceding transactions for BNC Company.

List debit transactions first and then list credit transactions.

General Journals

No.	Account Titles and Explanation	Debit ($)	Credit ($)
(e)	work in process inventory - mixing


	to assign overhead to process
(f)

	to record transfer of units to the finishing department
(g)

	to record transfer of units to finished goods
(h)

	to record the sale of goods on account


	to record cost of goods sold

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