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Sharma Company has three process departments: Mixing, Encapsulating, and Bottling. At the beginning of the year, there were no work-in-process or finished goods inventories.

Sharma Company has three process departments: Mixing, Encapsulating, and Bottling. At the beginning of the year, there were no work-in-process or finished goods inventories. The following data are available for the month of July: Manufacturing Costs Added* Ending Work in Process Department Mixing Encapsulating Bottling $94,900 77,950 74,430 $20,260 19,600 4,960 *Includes only the direct materials, direct labor, and the overhead used to process the partially finished goods received from the prior department. The transferred-in cost is not included. Required: 1. Prepare journal entries that show the transfer of costs (a) from Mixing to Encapsulating, (b) from Encapsulating to Bottling, and (c) from Bottling to finished goods inventory. a. Work in Process-Encapsulating Work in Process-Mixing b. Work in Process-Bottling Work in Process-Encapsulating c. Finished Goods Work in Process-Bottling Feedback Check My Work As the work is finished in a process (department), the partially completed units and all their associated costs are transferred to the next process (department) by debiting the WIP account of the process receiving the unit and crediting the WIP account of the transferring process ( 2. Post the entries made in Requirement 1 into the T-accounts below. The costs added from the data provided have been entered in the T-accounts. WIP-Mixing 94,900 20,260 WIP-Encapsulating 77,950 19,600 WIP-Bottling 74,430 4,960 Finished Goods

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