Megans Classic Cream Soda has two processing departments - Formulating and Bottling.

In the Formulating Department, ingredients are checked for quality and then mixed and injected with carbon dioxide to create bulk cream soda. In the Bottling Department, bottles are checked for defects, filled with cream soda, capped, visually inspected again for defects, and then packed for shipping. Materials are added in the Formulating Department and some are added later on in the Bottling Department.

Information relating to the companys operations for May are as follows:

Raw materials used in production: Formulating Department, $10,000; and Bottling Department, $1,500.

Direct labor used in production: Formulating Department, $1,000; and Bottling Department, $5,000.

Manufacturing Overhead used in production: Formulating Department, $2,000; and Bottling Department, $3,000.

When the units in the Formulating Department are completed, the costs are transferred to the Bottling Department. After processing has been finished in the Bottling Department, the costs are transferred to the Finished Goods inventory account. Finally, when the units are sold, the cost of the units is transferred to Cost of Goods Sold.

Required:

1. Prepare all journal entries to record items (a) through (c) above.