Gardner Company produces 18-ounce boxes of a wheat cereal in three departments: mixing, cooking, and packaging. During August, Gardner produced 125,000 boxes with the following costs: Mixing Cooking Packaging Department Department Department Direct materials $413,400 $188,200 $165,800 Direct labor 60,800 37,500 89,900 Applied overhead 75,000 40,250 115,250 Required: 1. Calculate the costs transferred out of each department. 2. Prepare journal entries that reflect these cost transfers.
Gardner Company produces 18-ounce boxes of a wheat cereal in three departments: mixing, cooking, and packaging. During August, Gardner produced 125,000 boxes with the following costs: Mixing Cooking Packaging Department Department Department Direct materials $413,400 $188,200 $165,800 Direct labor 60,800 37,500 89,900 Applied overhead 75,000 40,250 115,250 Required: 1. Calculate the costs transferred out of each department. 2. Prepare journal entries that reflect these cost transfers.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Gardner Company produces 18-ounce boxes of a wheat cereal in three departments: mixing, cooking, and packaging. During August, Gardner produced 125,000 boxes with the following costs:
|
|
Mixing
|
Cooking
|
Packaging
|
|
Department
|
Department
|
Department
|
|
| Direct materials | $413,400 | $188,200 | $165,800 |
| Direct labor | 60,800 | 37,500 | 89,900 |
| Applied |
75,000 | 40,250 | 115,250 |
Required:
| 1. | Calculate the costs transferred out of each department. |
| 2. | Prepare |
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