In: Accounting
ournal 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 | $83,270 | $22,700 | ||
Encapsulating | 75,160 | 18,130 | ||
Bottling | 71,520 | 2,980 |
*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. | |||
f | |||
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 | |||
---|---|---|---|
83,270 | fill in the blank | ||
22,700 |
WIP—Encapsulating | |||
---|---|---|---|
fill in the | fill in the blank | ||
75,160 | |||
18,130 |
WIP—Bottling | |||
---|---|---|---|
fill in the blank | fill in the blank | ||
71,520 | |||
2,980 |
Finished Goods | |||
---|---|---|---|
fill in the blank |
Answer:
Date | Account Titles and Explanation | Debit | Credit |
1 | Work - in - process inventory - Encapsulating | $ 60570 | |
Work - in - process inventory - Mixing | $ 60570 | ||
Work - in - process inventory - Bottling | $ 117600 | ||
Work - in - process inventory - Encapsulating | $ 117600 | ||
Finished goods inventory | $ 186140 | ||
Work - in - process inventory - Bottling | $ 186140 | ||
2 | Work - in - process inventory - Mixing | ||
$ 83270 | $ 60570 | ||
$ 22700 | |||
Work - in - process inventory - Encapsulating | |||
$ 60570 | $ 117600 | ||
$ 75160 | |||
$ 18130 | |||
Work - in - process inventory - Bottling | |||
$ 117600 | $ 186140 | ||
$ 71520 | |||
$ 2980 | |||
Finished goods inventory | |||
$ 186140 |