Barker Inc manufactures tire tubes in a two stage process that
Barker, Inc. manufactures tire tubes in a two-stage process that includes assembly and sealing. The Sealing Department tests the tubes and adds a puncture-resistant coating to each tube to prevent air leaks. The direct materials (coating) are added at the end of the sealing process. Conversion costs are incurred evenly throughout the process. Work in process of the Sealing Department on March 31, 2014, consisted of 600 tubes that were 30% of the way through the production process. The beginning balance in Work-in-Process Inventory—Sealing was $ 25,000, which consisted of $ 10,000 in transferred in costs and $ 15,000 in conversion costs. During April, 3,400 tubes were transferred in from the Assembly Department. The Sealing Department transferred 3,200 tubes to Finished Goods Inventory in April, and 800 were still in process on April 30. This ending inventory was 60% of the way through the sealing process. Barker uses FIFO process costing. At April 30, before recording the transfer of costs from the Sealing Department to Finished Goods Inventory, the Barker general ledger included the following account:

1. Prepare a production cost report for the Sealing Department for April.
2. Journalize all transactions affecting the Sealing Department during April, including the entries that have already beenposted.
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