Gonzalez Tortilla Corporation produces tortillas in large batches and uses a process costing system. Three departmentsMixing, Rolling, and Packagingare involved in the production process. Gonzalez Tortilla has the following transactions:

1. Direct materials totaling $25,000$7,500 for the Mixing department, $6,250 for the Rolling department, and $11,250 for the Packaging departmentare requisitioned and placed in production.
2. Each production department incurs the following direct labor costs (wages payable):

Mixing

$3,125

Rolling

$5,750

Packaging

$2,750

1. Manufacturing overhead costs are applied to each department as follows:

Mixing

$12,500

Rolling

$8,750

Packaging

$9,375

1. Products with a cost of $6,875 are transferred from the Mixing department to the Rolling department.
2. Products with a cost of $8,000 are transferred from the Rolling department to the Packaging department.
3. Products with a cost of $11,375 are completed and transferred from the Packaging department to the finished goods warehouse.
4. Products with a cost of $10,375 are sold to customers.

Perform the following steps for each transaction:

1. Prepare a journal entry to record the transaction.
2. Summarize the flow of costs through T-accounts. Use the format presented in Figure 4.2, "Flow of Product Costs in a Process Costing System" (no need to include T-accounts for raw materials inventory, wages payable, or manufacturing overhead). Assume that there are no beginning balances in the work-in-process inventory, finished goods inventory, and cost of goods sold accounts.