Return to the Blending Department for the Bright Day Paint Company in E5-40B.
In E5-40B
Gallons:
Beginning work in process inventory ..................................................................... 0
Started production .............................................................................. 9,600 gallons
Completed and transferred out to Packaging in June ......................... 6,800 gallons
Ending work in process inventory (45% of the way through the
blending process) ................................................................................ 2,800 gallons
Costs:
Beginning work in process inventory ................................................................. $ 0
Costs added during June:
Direct materials (dyes) .................................................................................. $6,240
Direct labor ......................................................................................................... 950
Manufacturing overhead ................................................................................. 1,871
Total costs added during June ...................................................................... $9,061
Requirements
1. Prepare the journal entry to record the use of direct materials and direct labor and the allocation of manufacturing overhead to the Blending Department. Also, give the journal entry to record the costs of the gallons completed and transferred out to the Packaging Department. Assume the wages are unpaid.
2. Post the journal entries to the Work in Process Inventory-Blending T-account. What is the ending balance?