Author Question: Sweet Stuff Bakery mass-produces cakes using three sequential processing departments: Mixing, ... (Read 75 times)

cool · **on:** Jan 5, 2020

Sweet Stuff Bakery mass-produces cakes using three sequential processing departments: Mixing, Baking, and Packaging. The following transactions occurred during February:

1. Direct materials used in the Packaging Department	$15,000
2. Costs assigned to units completed and transferred out of Mixing	110,000
3. Direct labour incurred in the Mixing Department	6,000
4. Beginning balance: Work in Process Inventory–Baking	8,000
5. Manufacturing overhead allocated to the Baking Department	35,000
6. Beginning balance: Finished Goods Inventory	2,000
7. Costs assigned to units completed and transferred out of Baking	150,000
8. Beginning balance: Work in Process Inventory–Mixing	6,000
9. Direct labour incurred in the Packaging Department	4,000
10. Manufacturing overhead allocated to the Mixing Department	30,000
11. Direct materials used in the Mixing Department	75,000
12. Beginning balance: Raw Materials Inventory	12,000
13. Costs assigned to units completed and transferred out of Packaging	192,000
14. Beginning balance: Work in Process Inventory–Packaging	24,000
15. Purchases of Raw Materials	85,000
16. Direct labour incurred in the Baking Department	2,000
17. Manufacturing overhead allocated to the Packaging Department	20,000
18. Cost of goods sold	191,000

Note: No direct materials were used by the Baking Department.

Required:

A.	Post each of these transactions to the company's inventory T-accounts provided below.

B.	Determine the balance at month end in each of the T-accounts.

C.	Assume that 1,600,000 cakes were completed and transferred out of the Packaging Department

during the month. What was the cost per unit of making each cake?

flexer1n1 · **Reply #1 on:** Jan 5, 2020

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