Refer to your answers from E17A-6.

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

Transcribed Image Text:

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