Larney Corporation uses process costing. A number of transactions that occurred
ID: 2423875 • Letter: L
Question
Larney Corporation uses process costing. A number of transactions that occurred in June are listed below.
Raw materials that cost $39,700 are withdrawn from the storeroom for use in the Mixing Department. All of these raw materials are classified as direct materials.
Manufacturing overhead of $43,700 is applied in the Mixing Department using the department's predetermined overhead rate.
Units with a carrying cost of $113,700 finish processing in the Mixing Department and are transferred to the Drying Department for further processing.
Units with a carrying cost of $145,200 finish processing in the Drying Department, the final step in the production process, and are transferred to the finished goods warehouse.
Larney Corporation uses process costing. A number of transactions that occurred in June are listed below.
Explanation / Answer
Journal Entries Sr No Account Title Dr $ Cr $ 1.00 WIP-Mixing dept 39,700.00 Inventory-Direct Materials 39,700.00 2.00 WIP-Mixing dept 37,700.00 Wages Payable 37,700.00 3.00 WIP-Mixing dept 43,700.00 Manufacturing Overhead 43,700.00 4.00 WIP -Drying Dept 113,700.00 WIP-Mixing dept 113,700.00 5.00 Finished Goods 145,200.00 WIP -Drying Dept 145,200.00 6.00 Cost Of Goods Sold 139,700.00 Finished Goods 139,700.00
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