Gardner Company produces 18-ounce boxes of a wheat cereal in three departments: mixing, cooking, and...

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Accounting

Gardner Company produces 18-ounce boxes of a wheat cereal in three departments: mixing, cooking, and packaging. During August, Gardner produced 250,000 boxes with the following costs:
Mixing
Cooking
Packaging
Department
Department
Department
Direct materials $825,000 $379,500 $330,000
Direct labor 120,00075,000180,000
Applied overhead 225,00082,500332,500
Required:
1. Calculate the costs transferred out of each department.
2. Prepare journal entries that reflect these cost transfers.

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