Chapter 6, Problem 11E

Shorts Company has three process departments: Mixing, Encapsulating, and Bottling. At the beginning of the year, there were no work-in-process or finished goods inventories. The following data are available for the month of July:

*Includes only the direct materials, direct labor, and the overhead used to process the partially finished goods received from the prior department. The transferred-in cost is not included.

Required:

1. 1. Prepare journal entries that show the transfer of costs from one department to the next (including the entry to transfer the costs of the final department).
2. 2. Prepare T-accounts for the entries made in Requirement 1. Use arrows to show the flow of costs.