Calculate the costs transferred out of each department

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Reference no: EM13939905

BASIC COST FLOWS

Sabor Company produces 18-ounce boxes of an oat cereal. Sabor uses three departments: Mixing, Cooking, and Packaging. During the month of August, Sabor produced 150,000 boxes with the following costs:

	Mixing Department	Cooking Department	Packaging Department
Direct materials	$225,000	$75,000	$60,000
Direct labor	30,000	15,000	45,000
Applied overhead	45,000	22,500	67,500

Required:

1. Calculate the costs transferred out of each department.

2. Prepare journal entries that reflect these cost transfers.

Reference no: EM13939905

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