managerial accounting 424943

Nature’s Way, Inc., keeps one of its production facilities busy making a perfume called Essence de la Vache. The perfume goes through two processing departments: Blending and Bottling.

The following incomplete Work in Process account is provided for the Blending Department for March:

The $34,100 beginning inventory in the Blending Department consisted of the following elements: materials, $8,500; direct labor, $4,400; and overhead applied, $21,200.

Costs incurred during March in the Bottling Department were: materials used, $45,000; direct labor, $16,600; and overhead cost applied to production, $111,000.

Prepare journal entries to record the costs incurred in both the Blending Department and Bottling Department during March. (Omit the “$” sign in your response.)

Manufacturing overhead costs for the entire factory were incurred, $696,000. (Credit Accounts Payable and use a single Manufacturing Overhead control account for the entire factory.)

Units that were complete with respect to processing in the Blending Department were transferred to the Bottling Department, $662,000.

Units that were complete with respect to processing in the Bottling Department were transferred to Finished Goods, $790,000.