Sharpe Company makes organic salsa in two production departments, Cooking and Bottling. Direct materials costs are added at the beginning of each process, and conversion costs are added evenly throughout each process. The company reports the following for a recent month. Beginning work in process inventory Activity during the month Direct materials Direct labor Overhead applied Costs transferred from Cooking to Bottling Costs transferred from Bottling to finished goods Cooking $ 0 Bottling $ 5,500 $ 18,000 $ 8,200 12,000 15,000 $ 42,000 67,000 6,800 8,500 1. Prepare journal entries to record (a) direct materials used, (b) direct labor, and (c) overhead applied. 2. Prepare journal entries to record the costs transferred from (a) Cooking to Bottling and (b) Bottling to Finished Goods. 3. Use T-accounts to compute (a) the ending balance of Work in Process Inventory-Cooking and (b) the ending balance of Work in Process Inventory-Bottling. Required 1 Required 2 Required 3 Prepare journal entries to record (a) direct materials used, (b) direct labor, and (c) overhead applied. View transaction list Journal entry worksheet 1 2 3 Record direct materials used in production. Note: Enter debits before credits. Transaction General Journal Debit Credit a. Work in process inventory-Cooking Work in process inventoryBottling Raw materials inventory > Required 1 Required 2 Required 3 Prepare journal entries to record (a) direct materials used, (b) direct labor, and (c) overhead applied. View transaction list Journal entry worksheet < 1 2 3 Record direct labor used in production. Note: Enter debits before credits. Transaction General Journal Debit Credit b. Work in process inventory-Cooking Work in process inventory-Bottling Factory wages payable > Required 1 Required 2 Required 3 Prepare journal entries to record (a) direct materials used, (b) direct labor, and (c) overhead applied. View transaction list Journal entry worksheet < 1 2 3 Record the application of overhead to production. Note: Enter debits before credits. Transaction General Journal Debit Credit C. Work in process inventory-Cooking Work in process inventory-Bottling Factory overhead Required 1 Required 2 Required 3 Prepare journal entries to record the costs transferred from (a) Cooking to Bottling and (b) Bottling to Finished Goods. View transaction list Journal entry worksheet 1 2 Record the transfer of costs from Cooking to Bottling. Note: Enter debits before credits. Transaction a. General Journal Debit Credit > Required 1 Required 2 Required 3 Prepare journal entries to record the costs transferred from (a) Cooking to Bottling and (b) Bottling to Finished Goods. View transaction list Journal entry worksheet > 1 2 Record the transfer of costs from Bottling to Finished Goods. Note: Enter debits before credits. Transaction b. General Journal Debit Credit Required 1 Required 2 Required 3 Use T-accounts to compute (a) the ending balance of Work in Process Inventory-Cooking and (b) the ending balance of Work in Process Inventory-Bottling. Beginning balance Work in Process Inventory-Cooking Debit Credit Debit Work in Process Inventory-Bottling Credit Beginning balance Ending balance Ending balance < Required 2 Required 3>