In December, Davis Company had the following cost flows:

	Molding Department	Grinding Department	Finishing Department
Direct materials	$112,300	$29,200	$16,800
Direct labor	8,500	13,500	12,100
Applied overhead	9,400	60,800	11,000
Transferred-in cost:
From Molding		130,200
From Grinding			233,700
Total cost	$130,200	$233,700	$273,600

	Required:
1.	Prepare the journal entries to transfer costs from (a) Molding to Grinding, (b) Grinding to Finishing, and (c) Finishing to Finished Goods.
2.	CONCEPTUAL CONNECTION: Explain how the journal entries differ from a job-order cost system.

CHART OF ACCOUNTSDavis CompanyGeneral Ledger

	ASSETS
110	Cash
120	Accounts Receivable
130	Raw Materials
142	Work in Process-Grinding
143	Work in Process-Molding
144	Work in Process-Finishing
150	Overhead Control
160	Finished Goods
180	Accumulated Depreciation

	LIABILITIES
210	Accounts Payable
220	Wages Payable
230	Utilities Payable
240	Lease Payable
250	Other Payables

	EQUITY
310	Common Stock
320	Retained Earnings

	REVENUE
410	Sales

	EXPENSES
510	Cost of Goods Sold
520	Insurance Expense
530	Wages Expense
540	Supplies Expense
550	Utilities Expense
560	Depreciation Expense
590	Miscellaneous Expense

2. CONCEPTUAL CONNECTION: Explain how the journal entries differ from a job-order cost system.

The journal entries for the job-order and process-costing systems are generally very different . Job-order costing accumulates costs by while process costing accumulates them by .

For process costing, each department . As goods are completed in each department, journal entries are used to .