During August, the Following Transactions Were Recorded at Goyer Corporation

question 26

Essay

During August, the following transactions were recorded at Goyer Corporation.The company uses process costing. (1) Raw materials that cost $24,500 are withdrawn from the storeroom for use in the Assembly Department. All of these raw materials are classified as direct materials.
(2) Direct labor costs of $29,000 are incurred, but not yet paid, in the Assembly Department.
(3) Manufacturing overhead of $58,900 is applied in the Assembly Department using the department’s predetermined overhead rate.
(4) Units with a carrying cost of $101,200 finish processing in the Assembly Department and are transferred to the Painting Department for further processing.
(5) Units with a carrying cost of $106,100 finish processing in the Painting Department, the final step in the production process, and are transferred to the finished goods warehouse.
(6) Finished goods with a carrying cost of $95,100 are sold.


Required:
Prepare journal entries for each of the transactions listed above.

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Definitions:

Muffins

Baked goods that are usually sweet, made from batter or dough, and often enjoyed as a breakfast food or snack.

Comparative Advantage

The ability of an individual or group to carry out a particular economic activity (such as production of a specific good) more efficiently than another activity.

Compasses

Instruments used for navigation and orientation that show direction relative to the geographic cardinal directions.

Muffins

A small, baked item that is typically sweet, made from batter or dough.