In: Accounting
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 | |||
---|---|---|---|