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Refer to the Spritz example of process costing in the chapter. Explain why the production costs for each department are added together to obtain an

Refer to the Spritz example of process costing in the chapter. Explain why the production costs for each department are added together to obtain an estimate of the cost per bottle of Spritz, yet the journal entries record the costs in each production department separately.

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(3) Work in process inventory: finishing department $ 398 324 Raw material inventory $ 275 124 Wages payable 24 400 Manufacturing overhead 98 800 -to add the costs of direct material, direct labour and manufacturing overhead to work in process inventory in the finishing department. (4) Finished goods inventory: $1 045 204 Work in process: finishing department $1 045 204 -to record the cost of bottles of Spritz transferred from the finishing department to finished goods inventory.The journal entries to record the production costs for the month are: (1) Work in process inventory: mixing department $ 646 880 Raw material inventory $ 505 400 Wages payable 30 880 Manufacturing overhead 110 600 -to add the costs of direct material, direct labour and manufacturing overhead to work in process inventory in the mixing department. (2) Work in process inventory: finishing department $ 646 880 Work in process: mixing department $ 646 880 -to add the cost of the litres of mixture transferred from the mixing department to the finishing department

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