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Sharpe Company makes organic salsa in two production departments, Cooking and Bottling. Direct materials costs are added at the beginning of each process, and
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 Cooking $ 0 Bottling $ 7,200 $ 19,700 13,700 16,700 $ 9,900 8,500 10,200 $ 43,700 68,700 Costs transferred from Bottling to finished goods 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. Complete this question by entering your answers in the tabs below.
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