Jelly Treats produces jelly beans in three sequential processing departments: Centers, Shells, and Packaging. Assume that the Shells processing department began April with $18,500 of unfinished jelly bean centers. During April, the Shells process used $42,200 of direct materials, used $12,500 of direct labor, and was allocated $17,200 of manufacturing overhead. In addition, $126,400 was transferred out of the Centers processing department during the month and $196,500 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 April.
2. What is the ending balance in the Work in Process Inventory-Shells on April 30? What does this figure represent?