Sweety 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?