involves two departments, pro- essing department and then Problem 12-15B Process costing system Piedmont Food Company makes frozen vegetables. Production involves two departme cessing and packaging. Raw materials are cleaned and cut in the processing department and transferred to the packaging department where they are packaged and frozen. The followin transactions apply to Piedmont's first year (2014) of operations. (Assume that all transactions are for cash unless otherwise stated.) 1. The company was started when it acquired $160,000 cash from the issue of common stock 2. Piedmont purchased $42,000 of direct raw materials and $8,000 of indirect materials. Indi- rect materials are capitalized in the Production Supplies account. 3. Direct materials totaling $38,000 were issued to the processing department. 4. Labor cost was $77,000. Direct labor for the processing and packaging departments was $32,500 and $25,500, respectively. Indirect labor costs were $19,000. 5. The predetermined overhead rate was $0.80 per direct labor dollar in each department. 6. Actual overhead costs other than indirect materials and indirect labor were $22,500 for the year