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Lamont Company produced 80,000 machine parts for diesel engines. There were no beginning or ending work-in-process inventories in any department. Lamont incurred the following costs

Lamont Company produced 80,000 machine parts for diesel engines. There were no beginning or ending work-in-process inventories in any department. Lamont incurred the following costs for May:

Molding Department Grinding Department Finishing Department
Direct materials $12,000 $5,400 $8,000
Direct labor 10,000 8,800 12,000
Applied overhead 17,000 14,000 11,000

Required:

1. Calculate the costs transferred out of each department.

Costs Transferred Out
Molding $
Grinding $
Finishing $

Prepare the journal entries corresponding to these transfers. Also, prepare the journal entry for Grinding that reflects the costs added to the transferred-in goods received from Molding. For a compound transaction, if an amount box does not require an entry, leave it blank.

Transfer entries: Work in Process-Grinding
Work in Process-Molding
Work in Process-Finishing
Work in Process-Grinding
Finished Goods
Work in Process-Finishing
Cost-added entry (Grinding only): Work in Process-Grinding
Materials
Payroll
Overhead Control

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