Reference no: EM132050456

Question - Quality Quidditch Company produces brooms in two processing departments- cutting and binding. Information relating to the company's operations in March follows:

a) Raw materials were issued for use in production: cutting department $23,000; and binding department $8,000

b) Direct labor costs were incurred: cutting department $12,000 and binding department $7,000.

c) Manufacturing overhead was applied: cutting department $25,000; and binding department, $37,000

d) Untied, cut brooms were transferred from the cutting department to the binding department.According to the company's costing system, the cost of the untied, cut brooms was $57,000

e) Finished brooms were transferred from the binding department to the finished goods warehouse. According to the company's costing system, the cost the finished brooms was $103,000.

f) Finished brooms were sold to customers. According to the company's costing system, the cost of the finished brooms sold was $101,000

Required -

1) Prepare journal entries to record items (a) trough (f).

2) Please write down the detailed calculation process (showing how do you get those numbers).