Zhang Corporation Uses Process Costing

question 84

Essay

Zhang Corporation uses process costing. A number of transactions that occurred in June are listed below.
(1) Raw materials that cost $41,700 are withdrawn from the storeroom for use in the Mixing Department.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 $47,700 are incurred, but not yet paid, in the Mixing Department.
(3) Manufacturing overhead of $56,900 is applied in the Mixing Department using the department's predetermined overhead rate.
(4) Units with a carrying cost of $128,300 finish processing in the Mixing Department and are transferred to the Drying Department for further processing.
(5) Units with a carrying cost of $133,800 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 $129,200 are sold.
Required:
Prepare journal entries for each of the transactions listed above.

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Definitions:

Utility Functions

Representations of the satisfaction or pleasure consumers derive from consuming various goods or services.

S-Shaped

Describes a curve or function that depicts an initial slow growth, followed by rapid acceleration, and then a plateau or leveling off, commonly found in logistic growth models.

Convex

A shape or function that curves outward or has a bulge, often used in economics and mathematics to describe certain types of optimization problems or preferences.

Confidence Index

A measure, often used in financial contexts, reflecting the confidence or optimism that investors have in the financial markets or in the economy as a whole.