Refer to your answers from Exercise.

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 the Blending Department into the Packaging Department? Why would the company managers want to know thiscost?

Transcribed Image Text:

Gallons Beginning Work-in-Process Inventony Started in production Completed and transferred out to Packaging in May Ending work-in-Process Inventory (30% of the way through the blending process) Costs 0 gallons 9,000 gallors 4,000 gallons 5,000 gallons Beginning Work-in-Process Inventory Costs added during May Direct materials Direct labor Manufacturing overhead 6,750 1,300 2,000 10,050 Total costs added during May