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.

	Cooking	Bottling
Beginning work in process inventory	$ 0	$ 6,100
Activity during the month
Direct materials	$ 18,600	$ 8,800
Direct labor	12,600	7,400
Overhead applied	15,600	9,100

Costs transferred from Cooking to Bottling	$ 42,600
Costs transferred from Bottling to finished goods	67,600

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 InventoryCooking and (b) the ending balance of Work in Process InventoryBottling.

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 inventory-Bottling Raw materials inventory 18,600 8,800 27,400 Journal entry worksheet 1 2 3 Record direct labor used in production. Note: Enter debits before credits. Transaction b. General Journal Debit Credit X Journal entry worksheet Record the transfer of costs from Cooking to Bottling. Note: Enter debits before credits. Transaction General Journal a. Work in process inventory-Bottling Work in process inventory-Cooking Debit 42,600 Credit 42,600 Journal entry worksheet