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Q.2 Blue Diamond Company manufactures ZEBO through two processes: blending and bottling. In June, raw materials...

Q.2 Blue Diamond Company manufactures ZEBO through two processes: blending and bottling. In June, raw materials used were Blending $18,000 and Bottling $4,000. Factory labor costs were Blending $12,000 and Bottling $5,000. Manufacturing overhead costs were Blending $6,000 and Bottling $2,500. The company transfers units completed at a cost of $19,000 in the Blending Department to the Bottling Department. The Bottling Department transfers units completed at a cost of $11,000 to Finished Goods. Journalize the assignment of these costs to the two processes and the transfer of units as appropriate. ?

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Answer #1
General Journal Debit Credit
Work in process-Blending $18,000
Work in process-Bottling 4,000
Raw material inventory $22,000
Work in process-Blending $12,000
Work in process-Bottling 5,000
Factory labor $17,000
Work in process-Blending $6,000
Work in process-Bottling 2,500
Manufacturing overhead $8,500
Work in process-Bottling $19,000
Work in process-Blending $19,000
Finished goods inventory $11,000
Work in process-Bottling $11,000
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