Journal Entries

Shorts Company has three process departments: Mixing, Encapsulating, and Bottling. At the beginning of the year, there were no work-in-process or finished goods inventories. The following data are available for the month of July:

Department		Manufacturing Costs Added*		Ending Work in Process
Mixing		$89,700		$22,610
Encapsulating		75,520		17,530
Bottling		72,180		3,270

*Includes only the direct materials, direct labor, and the overhead used to process the partially finished goods received from the prior department. The transferred-in cost is not included.

Required:

1. Prepare journal entries that show the transfer of costs (a) from Mixing to Encapsulating, (b) from Encapsulating to Bottling, and (c) from Bottling to finished goods inventory.

a.
b.
c.

2. Post the entries made in Requirement 1 into the T-accounts below. The costs added from the data provided have been entered in the T-accounts.

WIPMixing
	89,700
	22,610

WIPEncapsulating
	75,520
	17,530

WIPBottling
	72,180
	3,270

Finished Goods