Question

In October, the cost of materials transferred into the Rolling Department from the Casting Department of Kraus Steel Company is $509,600. The conversion cost for the period in the Rolling Department is $106,800 ($63,400 factory overhead applied and $43,400 direct labor). The total cost transferred to Finished Goods for the period was $530,000. The Rolling Department had a beginning inventory of $21,000.

a1. Journalize the cost of transferred-in materials. If an amount box does not require an entry, leave it blank.

a2. Journalize the conversion costs. If an amount box does not require an entry, leave it blank.

a3. 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

Answer:

Journal

S.No	Particular	Debit	Credit
a1	Work in process-Rolling	509,600
	Work in process-Casting		509,600
a2	Work in process-Rolling	106,800
	Factory overhead-Rolling		63400
	Wages payable		43,400
a3	Finished goods	530,000
	Work in process-Rolling		530,000

b) Balance of work in process = Beginning inventory + Cost of material +Conversion cost - Finished goods

= 21,000+ 509,600 + 106,800 - 530,000

= $107,400