eBook

Question Content Area

Journal Entries

Sharma Company has three process departments: Mixing, Encapsulating, and Bottling. At the beginning of the year, there were no work-in-process or finished goods inventories. The following data are available for the month of July:

Department		Manufacturing Costs Added*		Ending Work in Process
Mixing		$82,590		$21,880
Encapsulating		79,610		19,010
Bottling		71,640		2,550

*Includes only the direct materials, direct labor, and the overhead used to process the partially finished goods received from the prior department. The transferred-in cost is not included.

Required:

Question Content Area

1. Prepare journal entries that show the transfer of costs (a) from Mixing to Encapsulating, (b) from Encapsulating to Bottling, and (c) from Bottling to finished goods inventory.

a.	Materials Overhead Work in Process-Bottling Work in Process-Encapsulating Work in Process-Mixing Work in Process-Encapsulating	Work in Process-Encapsulating
	Finished Goods Materials Work in Process-Bottling Work in Process-Encapsulating Work in Process-Mixing Work in Process-Mixing		Work in Process-Mixing
b.	Finished Goods Materials Work in Process-Bottling Work in Process-Encapsulating Work in Process-Mixing Work in Process-Bottling	Work in Process-Bottling
	Finished Goods Materials Work in Process-Bottling Work in Process-Encapsulating Work in Process-Mixing Work in Process-Encapsulating		Work in Process-Encapsulating
c.	Finished Goods Work in Process-Bottling Work in Process-Encapsulating Work in Process-Mixing Finished Goods	Finished Goods
	Finished Goods Work in Process-Bottling Work in Process-Encapsulating Work in Process-Mixing Work in Process-Bottling		Work in Process-Bottling

Feedback Area

Feedback

Question Content Area

2. Post the entries made in Requirement 1 into the T-accounts below. The costs added from the data provided have been entered in the T-accounts.

WIPMixing
	82,590	fill in the blank 6d99bbf4001f05a_1
	21,880

WIPEncapsulating
	fill in the blank 6d99bbf4001f05a_2	fill in the blank 6d99bbf4001f05a_3
	79,610
	19,010

WIPBottling
	fill in the blank 6d99bbf4001f05a_4	fill in the blank 6d99bbf4001f05a_5
	71,640
	2,550

Finished Goods
	fill in the blank 6d99bbf4001f05a_6