Question

Healthy Start Bakery mass- produces bread using three sequential processing departments: Mixing, Baking, and Packaging. The following transactions occurred during February:
1. Direct materials used in the Packaging Department...................................... $ 33,000
2. Costs assigned to units completed and transferred out of Mixing................. $ 226,000
3. Direct labor incurred in the Mixing Department............................................. $ 11,600
4. Beginning balance: Work in Process Inventory— Baking................................. $ 15,200
5. Manufactured overhead allocated to the Baking Department....................... $ 74,000
6. Beginning balance: Finished Goods Inventory............................................... $ 4,000
7. Costs assigned to units completed and transferred out of Baking................. $ 302,000
8. Beginning balance: Work in Process Inventory— Mixing................................. $ 12,600
9. Direct labor incurred in the Packaging Department....................................... $ 8,800
10. Manufacturing overhead allocated to the Mixing Department...................... $ 63,000
11. Direct materials used in the Mixing Department............................................ $ 155,000
12. Beginning balance: Raw Materials Inventory.................................................. $ 23,300
13. Costs assigned to units completed and transferred out of Packaging........... $ 385,000
14. Beginning balance: Work in Process Inventory— Packaging........................... $ 8,100
15. Purchases of Raw Materials............................................................................. $ 175,000
16. Direct labor incurred in the Baking Department............................................ $ 4,800
17. Manufacturing overhead allocated to the Packaging Department................ $ 48,000
18. Cost of goods sold.......................................................................................... $ 386,000

Requirements
1. Post each of these transactions to the company’s inventory T- accounts. You should set up separate T- accounts for the following:
• Raw Materials Inventory
• Work in Process Inventory— Mixing Department
• Work in Process Inventory— Baking Department
• Work in Process Inventory— Packaging Department
• Finished Goods Inventory
2. Determine the balance at month- end in each of the inventory accounts.
3. Assume 3,300,000 loaves of bread were completed and transferred out of the ­Packaging Department during the month. What was the cost per unit of making each loaf of bread (from start to finish)?




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  • CreatedAugust 27, 2014
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