Problem - Lawson Company has three process departments: dicing, cooking, and canning at the beginning of the fiscal year (July 1) there were no work in process or finished goods inventories. The following data are available for the month of July:

Department manufacturing of costs added* ending work in process

Dicing $120,000 $30,000

Cooking 110,000 25,000

Canning 100,000 5,000

*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

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. Prepare T-accounts for the entries made in question 1. Use arrows to show the flow of costs.