Golden Ring Company produces two types of product: Large andLarger. Two work orders for two batches of the products are shownbelow, along with some additional cost information:
| Large | Larger |
| Work Order 10 | Work Order 11 |
| Direct materials (actualcosts) | $45,000 | $75,000 |
| | |
| Applied conversioncosts: | | |
| Mixing | ? | ? |
| Cooking | $12,000 | $12,000 |
| Bottling | $10,000 | $15,000 |
| | |
| Batch size(bottles) | 5,000 | 5,000 |
In the Mixing Department, conversion costs are applied on the basisof direct labor hours. Budgeted conversion costs for the departmentfor the year were $50,000 for labor and $125,000 for overhead.Budgeted direct labor hours were 2,500. It takes three minutes tomix the ingredients needed for each bottle.
Large (Work Order 10) and Larger (Work Order 11) flow through theMixing Department first, then through the Cooking and Bottlingdepartments.
What is Golden Ring Company's journal entry to apply conversioncosts in the Mixing Department for Work Order 10?
a.
Work in Process-Mixing45,000
Materials45,000
b.
Work in Process-Mixing17,500
Conversion Costs Control17,500
c.
Conversion Costs Control17,500
Work in Process-Mixing17,500
d.
Materials45,000
Work in Process-Mixing45,000
