In December, Davis Company had the following cost flows: Molding Department Grinding Department Finishing Department Direct materials $111,600 $30,000 $17,200 Direct labor 8,000 13,600 11,600 Applied overhead 8,400 60,400 11,200 Transferred-in cost: From Molding 128,000 From Grinding 232,000 Total cost $128,000 $232,000 $272,000 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 1. Prepare the Dec. 31 journal entries to transfer costs from (a) Molding to Grinding, (b) Grinding to Finishing, and (c) Finishing to Finished Goods. Refer to the Chart of Accounts for the exact wording of account titles. PAGE 15 GENERAL JOURNAL DATE ACCOUNT POST. REF. DEBIT CREDIT 1 2 3 4 5 6 CHART OF ACCOUNTS Davis Company General Ledger ASSETS REVENUE 110 Cash 410 Sales 120 Accounts Receivable 130 Raw Materials EXPENSES 142 Work in Process-Grinding 510 Cost of Goods Sold 143 Work in Process-Molding 520 Insurance Expense 144 Work in Process-Finishing 530 Wages Expense 150 Overhead Control 540 Supplies Expense 160 Finished Goods 550 Utilities Expense 180 Accumulated Depreciation 560 Depreciation Expense 590 Miscellaneous Expense LIABILITIES 210 Accounts Payable 220 Wages Payable 230 Utilities Payable 240 Lease Payable 250 Other Payables EQUITY 310 Common Stock 320 Retained Earnings