In the weeks leading up to Hanukkah each year, Als Wooden Turnings produces large batches of dreidels and uses a process costing system. Three departmentsassembly, painting, and packagingare involved in the production process. AWT has the following transactions:

1. Direct materials total $20,000. That is, $6,000 for the assembly department, $5,000 for the painting department, and $9,000 for the packaging department. Direct materials are requisitioned and placed in production.

2. Each production department incurs the following direct labor costs (wages payable):

Assembly $2,500

Painting $4,600

Packaging $2,200

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

Assembly $10,000

Painting $ 7,000

Packaging $ 7,500

4. Products with a cost of $5,500 are transferred from the assembly department to the painting department.

5. Products with a cost of $6,400 are transferred from the painting department to the packaging department.

6. Products with a cost of $9,100 are completed and transferred from the packaging department to the finished goods warehouse.

7. Products with a cost of $8,300 are sold to customers.

Summarize the flow of costs through T-accounts (there is no need to include T-accounts for raw materials inventory, wages payable, or manufacturing overhead). Assume there are no beginning balances in the work-in-process inventory, finished goods inventory, and cost of goods sold accounts.

Use your summary to respond to the following question:

At the end of this accounting period, what are the closing balances for the work-in-process (packaging) inventory account and the cost of goods sold inventory account?

a. $16,000 for WIP (packaging) and $9,100 for COGS

b. $25,100 for WIP (packaging) and $9,100 for COGS

c. $16,000 for WIP (packaging) and $8,300 for COGS

d. $25,100 for WIP (packaging) and $8,300 for COGS