Bright Coat House Paints Inc. manufactures high$-$quality interior emulsion paint, which it

packages in five$-$liter containers. The company operates two major production

departments$$Mixing and Packaging. The standard white paint, which serves as a

foundation for all the company's paint varieties, is formulated from raw materials in the

Mixing Department. In the Packaging Department, color pigments are added to the base

white paint, the colored paint is then filled into five$-$liter containers, and these containers

are labeled and prepared for distribution. The operational data for Bright Coat House Paints

Inc. for the month of May are as follows:

a$.$ Raw materials utilized in production: Mixing Department, $$950,000$; and Packaging

Department, $$710,000.$

b$.$ Direct labor costs incurred: Mixing Department, $$370,000$; and Packaging Department,

$$290,000.$

c$.$ Allocated manufacturing overhead costs: Mixing Department, $$740,000$; and Packaging

Department, $$450,000.$

d$.$ Transfer of basic white paint from the Mixing Department to the Packaging Department,

$$2,070,000.$

e$.$ Transfer of ready$-$to$-$ship paint from the Packaging Department to Finished Goods,

$$3,600,000.$

Required:

$1.$ Record the journal entries for transactions $($a$)$ through $($e$)$ above

Answer rating: 100% (QA)

To record the journal entries for the transactions described we need to consider the different depar... View the full answer