A. Describe the differences between a process costing system and a job costing system.

B. Describe the four key steps shown in a production cost report assuming the weighted average method is used.

C. Process Costing Journal Entries. Assume a company has two processing departmentsMolding 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.

Required: Prepare journal entries to record transactions 1 through 5