X Company manufactures cakes in two departments: Mixing and Packaging. The company uses aprocess cost accounting system. All materials are enteredthe beginning of each process.During April 2020, the following transactions were completed:Assigned raw materials of $60,000 and $50,000 to Work in Process Mixing and Packagingrespectively.Factory labor costs of $20,000 and $40,000 were assigned to Work in Process Mixing and Packagingrespectively.The company applied manufacturing overhead on the basis of $15 per machine hour.Machine hours used were 1,000 in Mixing and 2,000 in Packaging.During April, the company transferred units costing S80,000 from Mixing to Packaging.In addition, it trans ferred units costing $160,000 from Packaging to Finished Goods.Based on the above, the entryprepared to assign factory labor towork in processes consisted of:A Debit to WIP Mixing $20,000, a Debitto WIP Packaging $40,000, and aCredit to Factory Labor Inventory$60,000A Debit to WIP Mixing $20,000, a DebitO to WIP Packaging $40,000, and aCredit to Salaries Payable $60,000A Debit to WIP Mixing $20,000, a Debitto WIP Packaging $40,000, and aCredit to Raw Material $60,000O None of the above

Name: X Company manufactures cakes in two departments: Mixing and Packaging
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: X Company manufactures cakes in two departments: Mixing and Packaging. The company uses aprocess cost accounting system. All materials are enteredthe beginning of each process.During April 2020, the following transactions were completed:Assigned raw