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Prepare journal entries to record items

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Reference no: EM13337678

Micro Labs Company produces house paint in two processing departments: the Mixing Department which mixes the paint colors and the Finishing Department which puts the paint in containers and labels them. The following information related to the company's operation for October follows:

a) Raw materials were issued for use in production: Mixing department, $551,000, and the Finishing department, $629,000.

b) Direct labor costs incurred: Mixing department $230,000, and Finishing department $270,000.

c) Manufacturing overhead cost applied: Mixing department $665,000, and Finishing department, $405,000.

d) The cost of the mixed paint transferred from the Mixing department to the Finishing department was $1,850,000.

e) Paint that had been prepared for shipping was transferred from the Finishing department to Finished Goods. Cost of the transferred paint was $3,200,000.

Required: Prepare journal entries to record items a) through e) above.

Reference no: EM13337678

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