Question

In: Accounting

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

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

Solutions

Expert Solution

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

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