Problem:
Preparing journal entries and posting to work in process T-accounts
Refer to your answers from E17A-6.
Requirements
1.Prepare the journal entries to record the assignment of direct materials and direct labor, and the allocation of manufacturing overhead to the Blending Department. Also, prepare the journal entry to record the costs of the gallons completed and transferred out to the Packaging Department.
2.Post the journal entries to the Work in process inventory-Blending T-account. What is the ending balance?
3.What is the average cost per gallon transferred out of Blending into Packaging? Why would the company managers want to know this cost?