Question

Process Cost Journal Entries:

In October, the cost of materials transferred into the Rolling Department from the Casting Department of Kraus Steel Company is $522,200. The conversion cost for the period in the Rolling Department is $117,600 ($69,100 factory overhead applied and $48,500 direct labor). The total cost transferred to Finished Goods for the period was $550,000. The Rolling Department had a beginning inventory of $26,700.

1A) Journalize the cost of transferred-in materials. If an amount box does not require an entry, leave it blank.

2A) Journalize the conversion costs. If an amount box does not require an entry, leave it blank.

3A) Journalize the costs transferred out to Finished Goods. If an amount box does not require an entry, leave it blank.

b. Determine the balance of Work in Process—Rolling at the end of the period.

Answer 1

	Ans 1A
	Accounts Title	Dr	Cr
October	Work In process-Rolling Department	$522,200
	Work In process-Casting Department		$522,200
	(the cost of transferred in material recorded)
2A	Work In process-Rolling Department	117600
	Wages payable		48500
	Factory overhead		69100
	(being conversion cost recorded)
3A	Finsihed Goods Inventory	$550,000
	Work In process-Rolling Department		$550,000
	(being goods transferred to finished goods recorded)
b)	Ending balance in Rolling department
	26700+522200+117600-550000	$116,500
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