CORNERSTONE EXERCISES Cornerstone Exercise 6.1 Cost Flows Lamont Company produced 80,000 machine parts for diesel engines. There were 20 bining CORNERSTONE 6.1 or ending work-in-process inventories in any department. Lamont incurred the following costs for May Molding Grinding Finishing Department Department Department Direct materials S13.000 S 5.200 S 8.000 Direct labor 10.000 8,800 12.000 Applied overhead 17.000 14,000 14.000 11.000 .00 Required: 1. Calculate the costs transferred out of each department. 2. Prepare the journal entries corresponding to these transfers. Also, prepare the journal entry for Grinding that reflects the costs added to the transferred-in goods received from Molding, 3. What if the Grinding Department had an ending WIP of $12,000? Calculate the cost trans- ferred out and provide the journal entry that would reflect this transfer. What is the effect on finished goods calculated in Requirement I, assuming the other two departments have no ending WIP? Cornerstone Exercise 6.2 Unit Cost, No Work-in-Process Inventories OBJECTIVE 2 Lising Therapy has a physical therapist who performs electro-mechanical treatments for its CORNERSTONE 6.2 patients. During April, Lising had the following cost and output information: Direct materials S 750 Hygienist's salary $4,250 Overhead $5,000 Number of treatments 100 Required: 1. Calculate the cost per treatment for April. 2. Calculate the cost of services sold for April. (continued) to t