Great Beans produces jelly beans in three sequential processing departments: Centers, Shells, and Packaging. Assume that the Shells processing department began September with $ 18,100 of unfinished jelly bean centers. During September, the Shells process used $ 42,500 of direct materials, used $ 12,500 of direct labor, and was allocated $ 17,000 of manufacturing overhead. In addition, $ 126,900 was transferred out of the Centers processing department during the month and $ 196,200 was transferred out of the Shells processing department during the month. These transfers represent the cost of the jelly beans transferred from one process to another.
1. Prepare a T- account for the “Work in Process Inventory— Shells” showing all activity that took place in the account during September.
2. What is the ending balance in the “Work in Process Inventory— Shells” on September 30? What does this figure represent?