Shorts Company has three process departments: Mixing, Encapsulating, and Bottling. At the beginning of the year, there were no work-in-process or finished goods inventories. The following data are available for the month of July:

Required:
1. Prepare journal entries that show the transfer of costs from one department to the next (including the entry to transfer the costs of the final department).
2. Prepare T-accounts for the entries made in Requirement 1. Use arrows to show the flow of costs.

Transcribed Image Text:

Ending Work in Manufacturing Costs Added* Department Mixing Encapsulating Bottling $86,400 79,200 72,000 Process $21,600 18,000 3,600