Bebida Company has three process departments: Cooking, Blending, and Canning. At the beginning of the year (July 1) there were no work in process or finished goods inventories.

The following data are made available for the month of July:

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 of costs.

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Department Manufacturing Costs Added* Ending Work in Process Cooking $240,000 $60,000 Blending 220,000 50,000 Canning 200,000 10,000 "Includes only the direct materials, direct labor, and the overhead used to process the partially finished good received from the prior department. The transferred-in cost is not included.