2. Flow of costs through Work in Process Inventory.
Sweety Treats produces jelly beans in three sequential processing departments:
Centers
Shells
Packaging
Assume that the Shells processing department began April with $18,500 of unfinished
jelly bean centers. During April, the Shells process used $42,200 of direct materials,
used $12,500 of direct labor, and was allocated $17,200 of manufacturing overhead. In
addition, $126,400 was transferred out of the Centers processing department during the
month and $196,500 was transferred out of the Shells processing department during the
month. These transfers represent the cost of the jelly beans transferred from one
process to another.
a. Prepare a T-account for the Work in Process Inventory-Shells showing all
activity that took place in the account during April
b. What is the ending balance in the Work in Process Inventory-Shells on April
307 What does this figure represent?