APPLY IT! Pop Chewing Gum Company produces bubble gum. Direct materials are blended at the beginning of the manufacturing process. No materials are lost in the process, so one kilogram of materials Input produces one kilogram of bubble gum. Direct labor and overhead costs are incurred uniformly throughout the blending process. . . %30 current period On June 30, 16,000 units were in process. All direct materials had been added, but the units were only 20 percent complete in regard to conversion costs In the prior period. Direct materials costs of $8,100 and conversion costs of $11,800 were attached to the beginning Inventory. 19,900 During July, 405,000 kilograms of materials were used at a cost of $202,500. Direct labor charges were $299,200 and overhead costs applied during July were $284,0002 CC 583,200$ The ending work in process Inventory was 21,600 kilograms. All direct materials have been added to those units, and 25 percent of the conversion costs have been assigned. Output from the Blending Department is transferred to the Packaging Department. Required 1. Prepare a process cost report using the FIFO costing method for the Blending Department for July. 2. Identify the amount that should be transferred out of the Work in Process Inventory account, state where those dollars should be transferred, and prepare the appropriate journal entry. D D G E