Cost Flows Lamont Company produced 80,000 machine parts for diesel engines. There were no beginning or ending work-in-process inventories in any department. Lamont incurred the following costs for May: Molding Department Grinding Department Finishing Department Direct materials $12,000 $5,400 $8,000 Direct labor 10,000 12,000 8,800 15,000 Applied overhead 17,000 12,000 Required: 1. Calculate the costs transferred out of each department. Costs Transferred Out Molding $ 39,000 Grinding $ 68,200 Finishing $ 100,200 2. Prepare the journal entries corresponding to these transfers. Also, prepare the journal entry for Grinding that reflects the costs added to the transferred-in goods received from Molding. For a compound transaction, if an amount box does not require an entry, leave it blank. Transfer entries: Work in Process-Grinding 39,000 Work in Process-Molding 39,000 Work in Process-Finishing 68,200 Work in Process-Grinding 68,200 Finished Goods 100,20 Work in Process-Finishing 100,20 Cost-added entry (Grinding only): Work in Process-Grinding 29,200 Materials 5,400 Payroll 8,800 Overhead Control 15,000 3. What if the Grinding Department had an ending WIP of $11,000? Calculate the cost transferred out. 56,200 X $ Feedback Check My Work Calculate the difference of the cost transferred out and make a journal entry according to the above instructions. Explain what the effect is on Finished Goods. Provide the journal entry that would reflect this transfer. Work in Process-Finishing 56,201 x Work in Process-Grinding 56,201 x Feedback Check My Work Calculate the difference of the cost transferred out and make a journal entry according to the above instructions. Explain what the effect is on Finished Goods. What is the effect on finished goods calculated in Requirement 1, assuming the other two departments have no ending WIP? Decreased by 12,000 X