Lutz manufacturing company journal | Accounting homework help

Lutz Manufacturing Company produces a product in two departments: (1) Mixing and (2) Finishing. The company uses a process cost accounting system.

(a)  Purchased raw materials for $50,000 on account.

(b)  Raw materials requisitioned for production were:

  Direct materials

  Mixing department  $20,000

  Finishing department  14,000

(c)  Incurred labor costs of $69,000.

(d)  Factory labor used:

  Mixing department  $44,000

  Finishing department  25,000

(e)  Manufacturing overhead is applied to the product based on machine hours used in each department:

  Mixing department—300 machine hours at $30 per machine hour.

  Finishing department—500 machine hours at $20 per machine hour.

(f)  Units costing $56,000 were completed in the Mixing Department and were transferred to the Finishing Department.

(g)  Units costing $60,000 were completed in the Finishing Department and were transferred to finished goods.

(h)  Finished goods costing $40,000 were sold on account for $55,000.

Instructions
Prepare the journal entries to record the preceding transactions for Lutz Manufacturing Company.