Process Costing Journal Entries. Assume a company has two processing departmentsMolding and Packaging. Transactions for the month are shown as follows:

1. The Molding department requisitioned direct materials totaling $4,000 to be used in production.
2. Direct labor costs totaling $7,000 were incurred in the Molding department, to be paid the next month.
3. Manufacturing overhead costs applied to products in the Molding department totaled $5,000.
4. The cost of goods transferred from the Molding department to the Packaging department totaled $20,000.
5. Manufacturing overhead costs applied to products in the Packaging department totaled $3,600.