Question

The cost of materials transferred into the Botting Department of Mountain Springs Water Company is $32,400, with $25,000 from the Purifying Department, plus additional $6,400 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 transferred to finished goods for the period was $31,980. The Bottling Department had a beginning inventory of $1,860 a. Joumalize (1) the cost of transferred in materials (2) conversion costs, and the cost transferred out to finished goods. an amount box does not require an entry, leave it blank b. Determine the lance of Work in Processing at the end of the end 5 3 5 6 7 8 E R. P T Y U 5. G H C K L ? 1 2 3 B N M HP Laptop hp Do more from anywhere. All-day long.

Answer 1

Required a:

Event	Particulars	Debit	Credit
1	Work-in-process - Bottling	$32,400
	Work-in-process - Purifying		$26,000
	Raw materials inventory		$6,400
2	Work-in-process - Bottling	$8,750
	Manufacturing overhead		$3,750
	Direct labor		$5,000
3	Finished goods inventory	$31,980
	Work-in-process - Bottling		$31,980

Required b:

Beginning inventory	$1,860
Cost of direct materials	$32,400
Direct labor cost	$5,000
Manufacturing overhead	$3,750
(-) Cost of finished goods	($31,980)
Work-in-process - Bottling at the end	$11,030