Question

The cost of materials transferred into the Filling Department of Lilac Skin Care Company is $19,750, including $6,000 from the Blending Department and $13,750 from the materials storeroom. The conversion cost for the period in the Filling Department is $5,920 ($1,220 factory overhead applied and $4,700 direct labor). The total cost transferred to Finished Goods for the period was $24,030. The Filling Department had a beginning inventory of $2,100.

Required:

A.	(1) On June 30, journalize the cost of transferred-in materials.* (2) On June 30, journalize the conversion costs.* (3) On June 30, journalize the costs transferred out to Finished Goods.* * Refer to the Chart of Accounts for exact wording of account titles.
B.	Determine the balance of Work in Process-Filling at the end of the period.

Answer 1

Credit Debit $ 19,750 Date Account Titles and Explanation Jun-30 Work in Process - Filling Work in Process - Blending Materials (To record the cost of transferred-in materials.) $ 6,000 $ 13,750 $ 5,920 Jun-30 Work in Process - Filling Department Factory Overhead - Filling Wages payable (To record the conversion costs) $ 1,220 $ 4,700 $ 24,030 Jun-30 Finished Goods Work in Process - Filling (To record the costs transferred out to Finished Goods) $ 24,030 Particulars Beginning inventory Add: Cost of transferred-in materials Add: Conversion costs Less: Costs transferred out to Finished Goods Balance of Work in Process-Filling Amount $ 2,100 $ 19,750 $ 5,920 $ -24,030 $ 3,740