As shown in Exhibits, Black Fly produces bottles of Strawberry/Rhubarb in three sequential processing departments: Blending, Carbonation, and Packaging. Assume that the Carbonation Department began September with $18,340 of unfinished liquid. During September, the Carbonation process used $42,600 of direct materials and $12,130 of direct labour, and was allocated $17,260 of manufacturing overhead. In addition, during September, $126,400 was transferred out of the Blending Department and $196,420 was transferred out of the Carbonation Department. These transfers represent the cost of the Strawberry/Rhubarb liquid transferred from one process to another.

QUESTION CONTINUE TO NEXT PAGE

Required
1. Prepare a T-account for the €œWork in Process Inventory€”Carbonation€ showing all
activity that took place in the account during September.
2. What is the ending balance in the €œWork in Process Inventory€”Carbonation€ on September 30? What does this figure represent?

Transcribed Image Text:

PANEL A- JOB COSTING Shaw Group Inc Manufacturing Costs: Job 100 Direct materials Direct labour Manufacturing Finished goods Job 101 of goods overhead Job 102 Raw Materials Inventory Work in Process Inventory Finished Goods Inventory Cost of Goods Sold Wages Payable xX Manufacturing Overhead PANEL B PROCESS COSTING Black Fly Beverage Con Blending Manufacturing Costs: Direct materials Direct labour Manufacturing Carbonation Finished goods inventory Cost of goods sold Packaging overhead Raw Materials Inventory Work in Process Work in Process Work in Process Finished Goods Inventory Cost of Goods Sold Inventory Inventory Carbonation Inventor- Packaging Wages Payable Blending Manufacturing Overhead xX Direct materials raw cane suga fruit, flavourings) Blending process CA Direct labour (workers operating mixing vats) Liquid Mix (depreciation on mixing vats) Direct materials (Co2 gas) LACE Carbonation process Direct labour (workers operating carbonation machines) Finished Beverage overhead (depreciation on carbonation machines) Direct materials bottles, glueless cardboard packages Packaging process Diract labour (workers hand-packing the bottles) Bottles of Strawberry/Rhubarb Ready for Sale overhoad depreciation on packaging equipment) Finished Goods Inven tory