estion list Question 1 Question 2 Question 3 lp n Requirements You're an Artist prepares and packages paint products. You're an Artist has two departments: Blending and Packaging Direct materials are added at the beginning of the blending process (dyes) and at the end of the packaging process (cans). Data from the month of May for th Blending Department are as follows: View the data from Max. You're an Artist completed the following production cost report for its Blending Department for the month of May View the assignment of costs. Conversion costs are added evenly throughout each process. The company uses the weighted-average method. Read the requirements. Requirement 1. Prepare the journal entries to record the assignment of direct materials and direct labor and the allocation of manufacturing overhead to the Blending Department. Also, prepare the journal entry to record the costs of the gallons completed and transferred out to the Packaging Department. Assume labor costs are accrued and not yet paid. (Record debits first, then credits. Exclude explanations from any journal entries.) Begin with the journal entry to record the assignment of direct materials to the Blending Department. Do not record the assignment of direct labor or the allocation of manufacturing overhead with this entry. We will prepare those entries separately in the following steps. Date Debit Credit Accounts May 31 1. Prepare the journal entries to record the assignment of direct materials and direct labor and the allocation of manufacturing overhead to the Blending Department. Also, prepare the journal entry to record the costs of the gallons completed and transferred out to the Packaging Department. Assume labor costs are accrued and not yet paid. 2. Post the journal entries to the Work-in-Process Inventory-Blending T-account. What is the ending balance? 3. What is the average cost per gallon transferred out of the Blending Department into the Packaging Department? Why would the company managers want to know this cost? Print Done X Assignment of costs COSTS Costs to account for You're an Artist Production Cost Report - Blending Department (Partial) Month Ended May 31 Direct Materials Beginning work-in-process Costs added during the period Total costs to account for Divided by: Total EUP Cost per equivalent unit Costs accounted for Completed and transferred out Ending work-in-process S $ $ 0$ 4,950 4,950 9,900 0.50 $ Conversion Costs 2,900 $ 2,050 4,950 $ 0$ 2,812 2,812 7,030 0.40 2,320 $ 492 2,812 $ Total Costs - X 0 7,762 7,762 5,220 2,542 7,762 Data from May GALLONS Beginning Work-in-Process Inventory Started in production Completed and transferred out to Packaging in May Ending Work-in-Process Inventory (30% of the way through the blending process) COSTS Beginning Work-in-Process Inventory Costs added during May Direct materials Direct labor Manufacturing overhead allocated Total costs added during May 0 gallons 9,900 gallons 5,800 gallons 4,100 gallons $ $ 0 4,950 1,912 900 7,762