Paint PacksPaint Packs prepares and packages paint products. Paint PacksPaint Packs 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). Conversion costs are added evenly throughout each process. Data from the month of May for the Blending Department are as? follows:

Requirement 1. Present the journal entry to record the use of direct materials and direct labour and the allocation of manufacturing overhead to the Blending Department. ?(Record debits? first, then credits. Explanations are not? required.)

Journal Entry
Date		Accounts	Debit	Credit

Record the journal entry to record the costs of the litres completed and transferred out to the Packaging Department.

Journal Entry
Date		Accounts	Debit	Credit

Requirement 2. Post the journal entries to the Work in Process

Inventorylong dashBlending

?T-account and calculate the ending balance. ?(For entries with a zero? balance, make sure to enter? "0" in the appropriate cell. Leave unused cells? blank.)

Work in Process InventoryBlending
Bal. May 1
Bal. May 31

Litres:
Beginning work in process inventory	0
Started production	9,700	litres
Completed and transferred out to Packaging in May	6,800	litres
Ending work in process inventory (30% of the way through
the blending process)	2,900	litres
Costs:
Beginning work in process inventory	$0
Costs added during May:
Direct materials (dyes)	5,820
Direct labour	1,000
Manufacturing overhead	1,301
Total costs added during May	$8,121

Paint Packs
Blending Department
Assignment of Costs
	Assign costs:	Direct Materials			Conversion Costs				Total
	Completed and transferred out	6,800	x (	$0.60	+	$0.30	)		$6,120
	Ending work in process inventory:
	Direct materials	2,900	x	$0.60					1,740
	Conversion costs					870	x	$0.30	261
	Total ending work in process inventory, May 31								2,001
	Total cost accounted for								$8,121