Wood Again Inc. produces tables from recycled wood in a three-stage process that includes
cutting, assembling, and finishing, in that order. Direct materials are added in the Cutting and Finishing Departments. Direct labour and overhead are incurred in all three departments. The company’s general ledger includes the following accounts:
• Cost of Goods Sold
• Manufacturing Wages
• Work in Process Inventory—Milling
• Work in Process Inventory—Assembling
• Work in Process Inventory—Finishing
• Materials Inventory
• Finished Goods Inventory
• Manufacturing Overhead
Outline the flow of costs through the company’s accounts, including a brief description of each flow. Include a T-account for each account title given.