Lawson Company has three process departments: dicing, cooking, and canning. At the beginning of the fiscal year (July 1), there were no work-in-process or finished goods inventories. The following data are available for the month of July:

*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 from one department to the next (including the entry to transfer the costs of the final department).
2. Prepare T-accounts for the entries made in Requirement 1. Use arrows to show the flow ofcosts.

Transcribed Image Text:

Department Manufacturing Costs Added* Ending Work in Proces Cooking Canning $120,000 110,000 100,000 $30,000 25,000 5,000