Asked by Rafael Leyva on May 03, 2024
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Bayas Corporation uses process costing. A number of transactions that occurred in June are listed below.(1) Raw materials that cost $39,800 are withdrawn from the storeroom for use in the Mixing Department. All of these raw materials are classified as direct materials.(2) Direct labor costs of $16,100 are incurred, but not yet paid, in the Mixing Department.(3) Manufacturing overhead of $45,700 is applied in the Mixing Department using the department's predetermined overhead rate.(4) Units with a carrying cost of $87,600 finish processing in the Mixing Department and are transferred to the Drying Department for further processing.(5) Units with a carrying cost of $111,300 finish processing in the Drying Department, the final step in the production process, and are transferred to the finished goods warehouse.(6) Finished goods with a carrying cost of $98,200 are sold.Required:Prepare journal entries for each of the transactions listed above.
Process Costing
An accounting methodology used for homogenous products, where costs are assigned to mass-produced items over a set period.
Predetermined Overhead Rate
A rate used to allocate overhead costs to products or services, based on a planned amount of cost and activity.
Direct Materials
Raw materials that can be directly traced to the manufacturing process of a product and are considered a variable cost.
- Prepare journal entries for various transactions in a process costing system.
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Learning Objectives
- Prepare journal entries for various transactions in a process costing system.
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