Question

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	$412,800	$188,100	$165,500
Direct labor	60,400	37,900	90,400
Applied overhead	75,300	42,500	116,000

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 $412,800 $188,100 $165,500 Direct labor 60,400 37,900 90,400 Applied overhead 75,300 42,500 116,000 Required: 1. Calculate the costs transferred out of each department. 2. Prepare journal entries that reflect these cost transfers.

Answer 1