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		$92,720		$21,390
Encapsulating		79,970		19,830
Bottling		70,870		3,510

*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.	Work in Process-Encapsulating	fill in the blank 0d351e06e015ff9_2
	Work in Process-Mixing		fill in the blank 0d351e06e015ff9_4
b.	Work in Process-Bottling	fill in the blank 0d351e06e015ff9_6
	Work in Process-Encapsulating		fill in the blank 0d351e06e015ff9_8
c.	Finished Goods	fill in the blank 0d351e06e015ff9_10
	Work in Process-Bottling		fill in the blank 0d351e06e015ff9_12

Feedback

As the work is finished in a process, the partially completed units and all their associated costs are transferred to the next process by debiting the WIP account of the process receiving the unit and crediting the WIP account of the transferring department.

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
	92,720	fill in the blank 569e9f01cff2003_1
	21,390

WIPEncapsulating
	fill in the blank 569e9f01cff2003_2	fill in the blank 569e9f01cff2003_3
	79,970
	19,830

WIPBottling
	fill in the blank 569e9f01cff2003_4	fill in the blank 569e9f01cff2003_5
	70,870
	3,510

Finished Goods
	fill in the blank 569e9f01cff2003_6