Exercise 16-22 (Algo) Recording production costs LO P3, P4 Sharpe Company makes organic salsa in two production departments, Cooking and Bottling. Direct materials costs are added at the beginning of each process, and conversion costs are added evenly throughout each process. The company reports the following for a recent month. Cooking Bottling Beginning work in process inventory $0 $ 6,200 Activity during the month Direct materials $ 18,700 $ 8,900 Direct labor 12,700 7,500 Overhead applied 15,700 9,200 Costs transferred from Cooking to Bottling $ 42,700 Costs transferred from Bottling to finished goods 67,700 1. Prepare journal entries to record (a) direct materials used, (b) direct labor, and (c) overhead applied. 2. Prepare journal entries to record the costs transferred from (a) Cooking to Bottling and (b) Bottling to Finished Goods. 3. Use T-accounts to compute (a) the ending balance of Work in Process InventoryCooking and (b) the ending balance of Work in Process InventoryBottling. Complete this question by entering your answers in the tabs below. Required 1 ' Required 2 ' Required 3 Use T-accounts to compute (a) the ending balance of Work in Process InventoryCooking and (b) the ending balance of Work in Process InventoryBottling. Beginning balance Beginning balance - Direct materials 18,700 ransferred in Conversion b T wsooftememaon | Ending balance _ Ending balance _ 67,700| Transferred out