Publish Inc. has two departments: printing and binding. Each department has one direct cost category (direct materials) and one indirect cost category (conversion costs). This problem focuses on the binding department. Books that have undergone the printing process are immediately transferred to the binding department. Direct materials are added when the binding process is 80% complete. Conversion costs are added evenly during binding operations. When those operations are done, the books are immediately transferred to finished goods. Publish Inc. uses the weighted-average method of process costing. The following is a summary of the April 2015 operations of the binding department.

Required
1. Summarize the total binding department costs for April 2015, and assign these costs to units completed (and transferred out) and to units in ending work in process.
2. Prepare journal entries for April transfers from the printing department to the binding department and from the binding department to finished goods.

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Physical Units Transferred-in Direct Conversion (books) Costs Materials Costs Beginning work in process Degree of completion, beginning 900 S 32,775 S 0 $15,000 096 work in process Transferred in during April 2015 Completed and transferred out during April Ending work in process (April 30) Degree of completion, ending work in process Total costs added during April 100% 40% 2,700 3,000 600 100% 096 60% S144,000 26,700 $69,000