Apply the Concepts: Determine Costs and Prepare Journal Entries for Process Cost Flows

Gray Pharmaceuticals produces an anti-inflammatory medication. The medication requires three sequential processes: Mixing, Tableting, and Bottling. During the month of February, Gray produced 6,000 bottles of the medication. The costs for the units completed are shown in the following table.

Complete the table below:

		Mixing Process		Tableting Process		Bottling Process
Direct materials		$4,230		$775		$1,670
Direct labor		2,040		1,145		1,145
Applied overhead		2,345		2,035		1,675
Costs added		$8,615		$		$4,490
Costs transferred in		0
Costs transferred out		$		$		$

Prepare the journal entries that correspond to all transfers; also prepare the journal entry for Bottling that reflects the costs added to the transferred-in costs received from Tableting:

Account	Debit	Credit
Transfer Entries:
Work in Process- Select your answer -MixingTabletingItem 7	8,615
Work in Process- Select your answer -MixingTabletingItem 8		8,615
Work in Process- Select your answer -TabletingBottlingItem 9	12,570
Work in Process- Select your answer -TabletingBottlingItem 10		12,570
Finished Goods	17,060
Work in Process- Select your answer -TabletingBottlingItem 11		17,060
Cost-added entry:
Work in ProcessBottling
Materials
Payroll
Overhead Control