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

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Question:
Question:
Lutz 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 $74,000.
(d)
Factory labor used:
Mixing department
$44,000
Finishing department
30,000
(e)
Manufacturing overhead is applied to the product based on machine hours used in each department:
Mixing department—400 machine hours at $30 per machine hour.

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

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