Southwest Paper Company manufactures paper from pine logs in a continuous process. Its operations are divided into three activity centers: Stripping, Mixing, and Pressing. The Stripping Center strips the bark from the logs, and chips the logs into small pieces. The Mixing Center mixes the chips with chemicals in a vat. The Pressing Center presses the chemi- cally dissolved pulp into paper.

The process does not change, and the company's operations move at a con- stant speed so that beginning and ending inventories are always in the same amount and at the same stage of completion. For this reason, costs are trans- ferred out of work in process inventories by the end of each period. The company completed the following transactions during one week in August:

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(a) Purchased on credit three car loads of logs for $2,700 and one tank car of chemicals for $1,000. (b) Placed two car loads of logs and half of the chemicals into process. (c) Labor for the week was as follows: Stripping Center... Mixing Center... Pressing Center. Factory indirect labor. $1,500 700 900 800 (d) Manufacturing overhead (other than indirect labor) was as follows: Depreciation.. Machinery repairs Power Supplies Taxes $ 400 100 100 50 100 (e) The company applies manufacturing overhead to departments on the basis of 50 percent of direct labor costs. Required: Show the flow of costs for each of the transactions using T-accounts. Separate work in process accounts exist for each activity center.