Paint Packs prepares and packages paint products. Paint Packs has two departments: Blending and Packaging. Direct materials are added at the beginning of the blending process (dyes) and at the end of the packaging process (cans). Conversion costs are added evenly throughout each process. Data from the month of May for the Blending Department are as follows: Requirements 1. Present the journal entry to record the use of direct materials and direct labour and the allocation of manufacturing overhead to the Blending Depaltrnent. Also, give the journal entry to record the costs of the litres completed and transferred out to the Packaging Department. 2. POST. the journal entries 10 the WOI'K in Process InventoryBlending T-account. What is the ending balance? Litres: Beginning work in process inventory ................... O Started production .................................. 8,600 litres Completed and transferred out to Packaging in May _______ 6,300 litres Ending work in process inventory (30% of the way through the blending process) .......................... 2,300 litres Costs: Beginning work in process inventory ................... $ 0 Costs added during May: Direct materials (dyes) ......................... 5,246 Direct labour ................................. 700 Manufacturing overhead ....................... $ 3,042 Total costs added during May _________________________ Assignment of costs Paint Packs Blending Department Assignment of Costs Assign costs: Direct Materials Conversion Costs Total Completed and transferred out 6,300 x ( $ 0.61 + $ 0.40 ) $ 6,363 Ending work in process inventory: Direct materials 2,300 x $ 0.61 1,403 Conversion costs 690 x $ 0.40 276 Total ending work in process inventory, May 31 1,679 $ Total cost accounted for 8,042