Reference no: EM132535895

Process Costing Journal Entries.

Assume a company has two processing departments-Molding and Packaging. Transactions for the month are shown as follows.

1. The Molding department requisitioned direct materials totaling $2,000 to be used in production.
2. Direct labor costs totaling $3,500 were incurred in the Molding department, to be paid the next month.
3. Manufacturing overhead costs applied to products in the Molding department totaled $2,500.
4. The cost of goods transferred from the Molding department to the Packaging department totaled $10,000.
5. Manufacturing overhead costs applied to products in the Packaging department totaled $1,800.

Required:

Question 1: Prepare journal entries to record transactions 1 through 5.