JOURNAL ENTRIES, BASIC COST FLOWS In October, Gardner Company had the following cost flows:

Molding Department ($)

Grinding Department ($)

Finishing Department ($)

Direct materials 35,800 5,000 3,600 Direct labor 3,000 5,800 4,800 Applied overhead 3,200 29,200 4,600 Transferred-in cost:

From Molding 42,000 From Grinding — — 82,000 Total cost 42,000 82,000 95,000 Required:
Prepare the journal entries to transfer costs from

(a) Molding to Grinding,

(b) Grinding to Finishing, and

(c) Finishing to Finished Goods.
Exercise