Paint Products, Inc., produces paint in three processing departments—Mixing, Testing, and Packaging. Transactions for the month of September are shown as follows.

1. Direct materials totaling $80,000 are requisitioned and placed into production—$60,000 for the Mixing department, $11,000 for the Testing department, and $9,000 for the Packaging department.

2. Direct labor costs (wages payable) incurred by each department are as follows:

Mixing ……………..………    $35,000

Testing………..……………    $25,000

Packaging…………………    $18,000

3. Manufacturing overhead costs are applied to each department as follows

Mixing ……………..………    $17,500

Testing………..……………    $12,500

Packaging…………………    $  6,000

 

4. Products with a cost of $55,000 are transferred from the Mixing department to the Testing department.

5. Products with a cost of $86,000 are transferred from the Testing department to the Packaging department.

6. Products with a cost of $100,000 are completed and transferred from the Packaging department to the finished goods warehouse.

7. Products with a cost of $81,000 are sold to customers.

 

Required:

a. Prepare journal entries to record each of the previous transactions. 

b. In general, how does the process costing system used here differ from a job costing system?