For the Love of Painting prepares and packages paint products. For the Love of Painting has two departments: Blending and Packaging. Direct materials are added at the beginning of the blending process (dyes) and at the end of the packaging process (cans). Conversion costs are added evenly throughout each process. Data from the month of May for the Blending Department are as follows: (Click the icon to view the data from May.) For the Love of Painting completed the following production cost report for its Blending Department for the month of May: (Click the icon to view the assignment of costs.) Read the requirements. Requirement 1. Prepare the journal entries to record the assignment of direct materials and direct labor and the allocation of manufacturing overhead to the Blending Department. Also, prepare the journal entry to record the costs of the gallons completed and transferred out to the Packaging Department. (Record debits first, then credits. Exclude explanations from any journal entries.) Begin with the summary journal entry to record the assignment of direct materials and direct labor and the allocation of manufacturing overhead to the Blending Department. Date May 31 Accounts Debit Credit Data table Gallons Beginning Work-in-Process Inventory Started in production Completed and transferred out to Packaging in May Ending Work-in-Process Inventory (30% of the way through the blending process) Costs Beginning Work-in-Process Inventory Costs added during May: Direct materials Direct labor Manufacturing overhead allocated Total costs added during May Print Done - X two dep (dyes) a Data fro 0 gallons rtment fo 8,500 gallons 6,500 gallons 2,000 gallons direct lal entry to r then cre 5,525 1,500 labor an 2,547 $ 9,572 Reference For the Love of Painting Production Cost Report - Blending Department (Partial) Month Ended May 31 Transferred Direct Conversion Total In Materials Costs Costs COSTS Costs to account for: Beginning work-in-process n/a 69 0 $ 0 $ 0 n/a 5,525 4,047 9,572 Costs added during the period Total costs to account for n/a 5,525 4,047 9,572 n/a 8,500 7,100 Divided by: Total EUP n/a $ 0.65 $ 0.57 $ 1.22 Cost per equivalent unit Costs accounted for: Completed and transferred out n/a 69 4,225 $ 3,705 $ 7,930 n/a 1,300 342 1,642 Ending work-in-process n/a $ 5,525 $ 4,047 $ 9,572 Total costs accounted for Requirements 1. Prepare the journal entries to record the assignment of direct materials and direct labor and the allocation of manufacturing overhead to the Blending Department. Also, prepare the journal entry to record the costs of the gallons completed and transferred out to the Packaging Department. 2. Post the journal entries to the Work-in-Process Inventory-Blending T-account. What is the ending balance? 3. What is the average cost per gallon transferred out of the Blending Department into the Packaging Department? Why would the company managers want to know this cost? Print Done - I e dit am a irs ec