To illustrate the accounting for materials in a process cost system, assume the American Chair Company uses a process cost system and maintains separate work in process accounts in the general ledger for each of its two processing departments, Cutting and Assembly. The company manufactures a single style of chair. In the first department, the chair frame is cut out of wood, and its parts are sanded and finished. The frame is transferred to the second department. Where frames are assembled and padding and covering are added. During January, direct materials costing $13,608 and $ 7,296 were used in the Cutting Department and the Assembly Department, respectively. The journal entry to record the issue of materials to the two departments is: