Using the data in P,
in P, Premier Products Inc. has three departments and uses the process cost system of accounting. A portion of the departmental cost work sheet prepared by the cost accountant at the end of July is reproduced below.

1. Draft the necessary entries to charge the materials and labor costs to the appropriate work in process accounts, to apply factory overhead to work in process, and to record the transfer of costs from one department to another.
2. Prepare a statement of cost of goods manufactured for the month ended July 31.

Premier Products, Inc Department Cost Work Sheet For the Month Ended July 31, 2016 Units Cost per Units Amount Amount Unt Received in Transferred Charged to Credited to Analysis Cutting: Transferred Department or on Hand Department Department 6,600 Costs for month $30,000 16,000 14,000 Factory overhead...32.3 Completed and transferred to Shaping $10.00 $2.33 5,400 1,200 6,600 $54,000 6,000 $60,000 Closing inventory in process (1/2 completed) 6,600 $60,000 Shaping Received during month from Cutting Costs added during month 5,400 $54,000 1,200 6,000 4,800 Materials. , .. . 0.25 Factory overhead.. 1.00 Completed and transferred to Finishing $12.50 Closing inventory in process 4,400 1,000 5,400 $55,000 11,000 $66,000 5,400 $66,000 Finishing Received during month from Shaping Costs added during month: 4,400 $55,000 6,300 4,200 6,300 Factory overhead.. 1.50 Completed and transferred to stock $16.50 Closing inventory in process 4,000 $66,000 400 4,400 4,400 $71,800 $71,800