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Journal Entries Shorts Company has three process departments: Mixing, Encapsulating, and Bottling. At the beginning of...

Journal Entries

Shorts Company has three process departments: Mixing, Encapsulating, and Bottling. At the beginning of the year, there were no work-in-process or finished goods inventories. The following data are available for the month of July:


Department
Manufacturing
Costs Added*
Ending Work in
Process
Mixing $89,700 $22,610
Encapsulating 75,520 17,530
Bottling 72,180 3,270

*Includes only the direct materials, direct labor, and the overhead used to process the partially finished goods received from the prior department. The transferred-in cost is not included.

Required:

1. Prepare journal entries that show the transfer of costs (a) from Mixing to Encapsulating, (b) from Encapsulating to Bottling, and (c) from Bottling to finished goods inventory.

a.      
b.
c.

2. Post the entries made in Requirement 1 into the T-accounts below. The costs added from the data provided have been entered in the T-accounts.

WIP—Mixing
   89,700   
22,610
WIP—Encapsulating
  
   75,520
17,530
WIP—Bottling
   72,180
3,270
Finished Goods

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