Question

the mixing department performs a series

The Mixing Department performs a series of processes in which a fluid chemical is concentrated. Records indicate that the Mixing Department has been charged with $192,000 of direct labor costs. The manufacturing overhead rate is 150% of direct labor costs. Beginning work in process was $672,000 and ending work in process totaled $102,000. One-half of this period's completed products is sold on account at a price equal to 160% of its cost. Prepare journal entries to record (1) various costs charged to the Mixing Department this! period, (2) transfer of this period's completed product, and (3) sale of one-half of this period's production.

Answer 1

Answer
Account Titles and Explanation	Debit	Credit
Work in Progress Mixing Department	$        192,000
Wages Payable		$        192,000
To Record Direct Labor cost
Work in Progress Mixing Department	$        288,000
Manufacturing Overhead (192000*150%)		$        288,000
To Record Manufacturing Overhead
Finished Goods(672000+192000+288000-102000)	$     1,050,000
Work in Progress Mixing Department		$     1,050,000
( To record completed production )
Cost of Goods sold	$        525,000
Finished Goods(1050000*1/2)		$        525,000
( To Record COGS )
Cash	$        840,000
Sales(525000*160%)		$        840,000
(To Record Sales)

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