Assume a company has two processing departments—Molding and Packaging. Transactions for the month are shown as follows.

1. The Molding department requisitioned direct materials totaling $2,000 to be used in production.

2. Direct labor costs totaling $3,500 were incurred in the Molding department, to be paid the next month.

3. Manufacturing overhead costs applied to products in the Molding department totaled $2,500.

4. The cost of goods transferred from the Molding department to the Packaging department totaled $10,000.

5. Manufacturing overhead costs applied to products in the Packaging department totaled $1,800.

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