Question

The cost of materials transferred into the Botting Department of Mountain Springs Water Company is $32,400, with $26.000 from the Purifying Department, plus additional $6.00 from the materials storeroom. The conversion cost for the period in the Botting Department is $8,750 ($3,750 factory applied and $5,000 direct labor). The total costs trandferred to finished goods for the period was $31,900. The Botting Department had a beginning inwestory of $1,860. a. Joumalize (1) the cost of transferred in materials (2) conversion costs, and (3) the cost transferred out to finished goods. If an amount box does not require an entry leave it blank Work in Process-Boting Work In Process Purifying Materials . VII 11 Work in Processing 18 5.000 The Goodies Determine the balance of Work in Processing at the end of the period 11.00 N M HP Laptop hp Do more from anywhere. All-day long

Answer 1

(a)
Transaction	Accounting titles and Explanations	Debit	Credit
1	Work In Process - Bottling	$ 32,400
	Work In Process - Purifying		$ 26,000
	Materials		$ 6,400
	(To record cost of transferred in materials )
2	Work In Process - Bottling	$ 8,750
	Manufacturing overhead		$ 3,750
	Factory labor		$ 5,000
	(To record the conversion costs)
3	Finished goods inventory	$ 31,980
	Work In Process - Bottling		$ 31,980
	(To record cost transferred out to finished goods)
(b)
	Balance of Work in Process - Bottling Dept.               = $ 1,860 + $ 32,400 + $ 8,750 (-) $ 31,980	$ 11,030