Cost Flows Lamont Company produced 80,000 machine parts for diesel engines. There were no beginning or ending work-in-process inventories in any department. Lamont incurred the following costs for May: Molding Grinding Finishing Department Department Department Direct materials $12,000 $5,300 $8,000 Direct labor 10,000 8,800 12,000 Applied overhead 17,000 14,000 11,000 Required: 1. Calculate the costs transferred out of each department. Costs Transferred Out Molding 39,000 Grinding 672,000 x Finishing 982,000 X Feedback 2. Prepare the journal entries corresponding to these transfers. Also, prepare the journal entry for Grinding that reflects the costs added to the transferred-in goods received from Molding. For a compound transaction, if an amount box does not require an entry, leave it blank. Transfer entries: Work in Process-Grinding Work in Process-Molding Work in Process-Finishing Work in Process-Grinding Finished Goods Work in Process-Finishing Cost-added entry (Grinding only): Work in Process-Grinding Materials 1111 I 1110 Payroll Overhead Control 3. What if the Grinding Department had an ending WIP of $12,000? Calculate the cost transferred out. Feedback Check My Work Calculate the difference of the cost transferred out and make a journal entry according to the above instructions. Explain what the effect is on Finished Goods. Provide the journal entry that would reflect this transfer. Cash x Accounts Payable x Feedback What is the effect on finished goods calculated in Requirement 1, assuming the other two departments have no ending WIP? Decreased by $ Feedback