Return to the Blending Department for Paint by Number in E5-27A.
Gallons:
Beginning work in process inventory................................................................ 0
Started production.......................................................................... 9,200 gallons
Completed and transferred out to
Packaging in May........................................................................... 6,600 gallons
Ending work in process inventory (30% of the way
through the blending process)........................................................ 2,600 gallons
Costs:
Beginning work in process inventory............................................................ $ 0
Costs added during May:
Direct materials (dyes).............................................................................. 5,980
Direct labor................................................................................................... 850
Manufacturing overhead............................................................................ 1,733
Total costs added during May................................................................. $8,563
Requirements
1. Present 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.
2. Post the journal entries to the "Work in Process Inventory-Blending" T-account. What is the ending balance?