Question

Flowchart of Accounts Related to Service and Processing Departments Alcoa Inc. is the world's largest producer of aluminum products. One product that Alcoa manufactures is aluminum sheet products for the aerospace industry. The entire output of the Smelting Department is transferred to the Rolling Department. Part of the fully processed goods from the Rolling Department are sold as rolled sheet, and the remainder of the goods are transferred to the Converting Department for further processing into sheared sheet. Prepare a chart of the flow of costs from the processing department accounts into the finished goods accounts and then into the cost of goods sold account. The relevant accounts are as follows: Finished Goods-Rolled Sheet Cost of Goods Sold Materials Finished Goods-Sheared Sheet Factory Overhead-Smelting Department Work in Process-Smelting Department Work in Process-Rolling Department Factory Overhead-Rolling Department Work in Process-Converting Department Factory Overhead-Converting Department Answer the following questions. 1. Materials flow to which department? Cost of Goods Sold 2. The costs from Factory Overhead-Converting Department flow to which department? 3. The costs from Work in process-Smelting Department flow to which department? 4. The costs from Finished Goods-Sheared Sheet flow to which account?

Answer 1

Answer to Question 1: Materials flow to Work in Process - Smelting Department Answer to Question 2: The Costs from Factory Overhead - Converting Department flow to Work in Process - Converting Department Answer to Question 3: The Costs from Work in Process - Smelting Department flow to Work in Process - Rolling Department Answer to Question 4: The Costs from Finished Goods- Sheared Sheet flow to Cost of Goods Sold.