Return to the Blending Department for the Color World Paint Company in E5-26A.
In E5-26A
Department are as follows:
Gallons:
Beginning work in process inventory .............................................................. 0
Started production ........................................................................ 9,000 gallons
Completed and transferred out to Packaging in August .............. 6,500 gallons
Ending work in process inventory (30% of the way through the
blending process) ..........................................................................2,500 gallons
Costs:
Beginning work in process inventory .......................................................... $ 0
Costs added during August:
Direct materials (dyes) ............................................................................ 5,670
Direct labor ................................................................................................. 800
Manufacturing overhead ......................................................................... 2,100
Total costs added during August .......................................................... $8,570
Requirements
1. Prepare the journal entry to record the use of direct materials and direct labor and the allocation of manufacturing overhead to the Blending Department. Also, give the journal entry to record the costs of the gallons completed and transferred out to the Packaging Department. Assume the wages are unpaid.
2. Post the journal entries to the Work in Process Inventory-Blending T-account. What is the ending balance?