E4.30 LO 4.8 Process costing; no work in process: brewery Summer Brewing Company, a leading Australasian brewer, produces its primary product, the Summer Pale Ale, in 300 mL bottles. Production takes place in two departments: mixing and bottling. The manufacturing costs for each department for January were: Direct materials Direct labour Manufacturing overhead Mixing Bottling $112500 $18000 15000 6000 22 500 9000 In January the company produced 45000 litres of Summer Pale Ale, which was bottled into 150000 bottles. There were no work in process Inventories. Required 1. What is the cost per bottle of Summer Pale Ale? 2. Prepare the journal entries to record the production costs for January. Assume that the costs of the two production departments are charged to separate work in process inventory accounts. 3. Evaluate this approach to product costing.