Question

Process Cost Journal Entries In October, the cost of materials transferred into the Rolling Department from the Casting Department of Kraus Steel Company is $513,800. The conversion cost for the period in the Rolling Department is $109,400 ($68,200 factory overhead applied and $41,200 direct labor). The total cost transferred to Finished Goods for the period was $590,000. The Rolling Department had a beginning inventory of $25,700. al. 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. 59 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

5,13,800 $ 5,13,800 1,09,400 al: Work in process - Rolling $ Work in process - Casting a2: Work in process - Rolling $ Factory overhead- Rolling Wages Payable a3: Finished goods $ Work in process - Rolling $ 68,200 41,200 $ 5,90,000 $ 5,90,000 Balance of work in process = Beginning Inventory+Cost of materials+ Conversion cost-finished Goods =25700+513800+109400-590000 =58900

Equivalent units of production Whole units Direct material Conversion units Direct material Conversion units Inventory in process, beginning 840 0 210 840*0% 840*25% Started and completed 16760 16760 16760 16760*100% 16760*100% Transferred to packaging department 17600 Inventory in process, Ending 960 960 720 960*100% 960*75% Total 17720 17690