Sabor Company produces 18-ounce boxes of an oat cereal. Sabor uses three departments:
Mixing, Cooking, and Packaging. During the month of August, Sabor produced 150,000 boxes with the following costs:

Required:
1. Calculate the costs transferred out of each department.
2. Prepare journal entries that reflect these costtransfers.

Transcribed Image Text:

Cooking Packaging Department Department Department Mixing Direct materials Direct labor $225,000 30,000 Applied overead 5,000 $75,000 15,000 22,500 $60,000 45,000 67,500