Question 3 3.1 Chevy Motor Corporation produces Rubber products in large batches and uses a process costing system. Three departments - Mixing, Rolling, and Packaging - are involved in the production process. Chevy Motors has the following transactions: a. Direct materials totaling R20, 000 (R6,000 for the Mixing department, R5,000 for the Rolling department, and R9,000for the Packaging department) are requisitioned and placed in production. b. Each production department incurs the following direct labor costs (wages payable): Mixing R2,500 Rolling R4,600 Packaging R2,200 Mixing R10, 000 Rolling R7,000 Packaging R7,500 c. Manufacturing overhead costs are applied to each department as follows: Mixing R10,000 d. Products with a cost of R5, 500 are transferred from the Mixing department to the Rolling department. e. Products with a cost of R6, 400 are transferred from the Rolling department to the Packaging department. f. Products with a cost of R9,100 are completed and transferred from the Packaging department to the finished goods warehouse. g. Products with a cost of R8, 300 are sold to customers. Perform the following steps for each transaction: 3.1.1. Prepare a journal entry to record the transaction. (6) 3.1.2. Summarize the flow of costs through T-accounts. Use the Flow of Product Costs in a Process Costing System. (10) NB: Assume there are no beginning balances in the work-in-process inventory, finished goods inventory, and cost of goods sold accounts.