Warm Hearth Bakery mass-produces bread using three sequential processing departments: Mixing, Baking, and Packaging. The following transactions occurred during January:

Requirements 

1. Post each of these transactions to the company’s inventory T-accounts. You should set up separate 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 that 3,175,000 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)?  

Transcribed Image Text:

1. 2. 3. 4. 5. 6. 7. 8. 9. Direct materials used in the Packaging Department.. Costs assigned to units completed and transferred out of Mixing.... Direct labour incurred in the Mixing Department.. Beginning balance: Work in Process Inventory- Baking...... Manufacturing overhead allocated to the Baking Department.. Beginning balance: Finished Goods Inventory....... Costs assigned to units completed and transferred out of Baking... Beginning balance: Work in Process Inventory- Mixing.. Direct labour incurred in the Packaging Department.