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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 fo 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 6,800 15,000 8,500 $ 42,000 67,000 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 Process Inventory-Bottling. Complete this question by entering your answers in the tabs below. 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 View journal entry worksheet No Transaction General Journal 1 a. Work in process inventory-Bottling Work in process inventory-Cooking Debit Credit 8,200 18,000 26,200 Raw materials inventory 2 b. Work in process inventory-Bottling 6,800 Work in process inventory-Cooking 12,000 Factory wages payable 18,800
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