[lego24]

Problem 1:

A manufacturing company produces a product in 2 departments: (1) mixing and (2) finishing. The company uses a process cost accounting system.

(a) Purchased raw materials for $50,000 on account.

(b) Raw materials requisitioned for production were:
Direct Materials
Mixing Department $20,000
Finishing Department $14,000

(c) Incurred labor costs of $80,000.

(d) Factory labor used:
Mixing Department $48,000
Finishing Department $32,000

(e) Manufacturing overhead is applied to the product based on machine hours used in each department:
Mixing Department - 600 machine hours at $45 per machine hour
Finishing Department - 500 machine hours at $30 per machine hour

(f) Units costing $66,000 were completed in the Mixing Department & were transferred to the Finishing Department.

(g) Units costing $60,000 were completed in the Finishing Department & were transferred to the finished goods.

(h) Finished goods costing $30,000 were sold on account for $45,000.

Instructions:
Prepare the journal entries to record the preceding transactions for the manufacturing company

[pready]

You need to work this out yourself. Use your accounting textbook. Then if you have a specific question we will try to help you.