27. Mustine Company uses the weighted average method of process costing to account for the costs in its three production departments. Goods are transferred from Department 1 to Department 2 to Department 3, where they are completed. Mustine applies manufacturing overhead at a rate of 100% of direct labor costs in Department 1, 25% of direct labor costs in Department 2, and 150% of direct labor costs in Department 3. All direct materials are added at the beginning of production in each department, and conversion costs are incurred evenly throughout production in each department. The following information is available for each department in April:

Beginning Raw materials inventory in April was $10,000, and there was no beginning finished goods inventory. All materials purchases are paid on account. All labor is paid in cash. This period, Mustine purchased $80,000 in materials; $15,000 in indirect materials were placed into production, indirect labor was paid $10,000, factory equipment depreciation was $12,000, and miscellaneous factory expenses (paid on account) were $25,000. Mustine sold 14,000 units.
Mustine also paid $40,000 in cash for selling, general, and administrative expenses, and took $8,000 in office equipment depreciation.
Make all journal entries in the normal costing system for the period, and post them to t-accounts.

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Beginning WIP DM CC Units started Units completed Department 1 2,000 units $4,000.00 3,625.00 18,000 15,000 total 500 spoiled Department 2 1,500 units $1,000.00 1,950.00 5,579.50 Department 3 1,800 units $ 3,110.00 4,765.00 11,428.75 Normal spoilage Ending WIP 2% of good units Costs incurred 50% complete $25,000 DM $20,000 DL 14,000 total 750 spoiled 2% of good units 70% complete $15,000 DM $20,000 DL 14,500 total 200 spoiled 1% of good units 30% complete $30,000 DM $30,000 DL