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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 $$82,310$ $$22,420$

Encapsulating $81,07019,570$

Bottling $71,5004,040$

$*$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$.$

Work in Process$-$Encapsulating

Work in Process$-$Mixing

b$.$

Work in Process$-$Bottling

Work in Process$-$Encapsulating

c$.$

Finished Goods

Work in Process$-$Bottling

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Feedback

As the work is finished in a process $($department$),$ the partially completed units and all their associated costs are transferred to the next process $($department$)$ by debiting the WIP account of the process receiving the unit and crediting the WIP account of the transferring process $($department$).$

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$2.$ 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.

WIP$$Mixing

$82,310$ fill in the blank d$9$a$3$be$08$cfb$4031\_1$

$22,420$

WIP$$Encapsulating

fill in the blank d$9$a$3$be$08$cfb$4031\_2$

fill in the blank d$9$a$3$be$08$cfb$4031\_3$

$81,070$

$19,570$

WIP$$Bottling

fill in the blank d$9$a$3$be$08$cfb$4031\_4$

fill in the blank d$9$a$3$be$08$cfb$4031\_5$

$71,500$

$4,040$

Finished Goods

fill in the blank d$9$a$3$be$08$cfb$4031\_6$