Rankin Food Products Produces Cane Sugar Syrup in Bulk Quantities

Rankin Food Products produces cane sugar syrup in bulk quantities, and uses process costing. There are three processing departments-Mixing, Refining, and Packaging. On January 1, 2012, the first department, Mixing, had a zero beginning balance. During January, 80,000 gallons of syrup were started into production. During the month, 79,100 gallons were completed, and 900 remained in process, partially completed. During January, the Mixing Department incurred $7,500 of materials costs, $900 direct labor costs, and was allocated $2,500 of manufacturing overhead costs. Which of the following is the correct journal entry to record the costs added during January to the Mixing Department?

A) $$\begin{array} { | l | r | r | } \hline \text { Work in process - Mixing } & 10,900 & \\\hline \text { Accounts payable } & & 10,900 \\\hline\end{array}$$
B) $$\begin{array} { | l | r | r | } \hline \text { Work in process - Mixing } & 10,900 & \\\hline \text { Materials inventory } & & 7,500 \\\hline \text { Wages payable } & & 900 \\\hline \text { Manufacturing overhead } & & 2,500 \\\hline\end{array}$$
C) $$\begin{array} { | l | r | l | } \hline \text { Work in process - Mixing } & 10,900 & \\\hline \text { Work in process - Refining } & & 10,900 \\\hline\end{array}$$
D) $$\begin{array} { | l | r | r | } \hline \text { Materials inventory } & 7,500 & \\\hline \text { Wages payable } & 900 & \\\hline \text { Manufacturing overhead } & 2,500 & \\\hline \text { Work in process - Mixing } & & 10,900 \\\hline\end{array}$$