In October, Huttunen Company had the following cost flows:

Required:
1. Prepare the journal entries to transfer costs from (a) moulding to grinding, (b) grinding to finishing, and (c) finishing to finished goods.
2. Explain how the journal entries differ from a job-order cost system.

Transcribed Image Text:

Grinding Department Finishing Department Moulding Department Direct materials Direct labour Applied overhead Transferred-in cost: From moulding From grinding Total cost $ 5,000 5,800 29,200 $35,800 $ 3,600 4,800 4,600 3,200 42,000 82,000 $42,000 $82,000 $95,000