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Flowchart of Accounts Related to Service and Processing Departments Alcoa Inc. ( AA ) is the world's largest producer of aluminum products. One product that
Flowchart of Accounts Related to Service and Processing Departments
Alcoa Inc. AA is the world's largest producer of aluminum products. One product that Alcoa manufactures is aluminum sheet products for the aerospace industry. The entire output of the Smelting Department is transferred to the Rolling Department. Part of the fully processed goods from the Rolling Department are sold as rolled sheet, and the remainder of the goods are transferred to the Converting Department for further processing into sheared sheet.
Indicate the flow of costs from the processing department accounts into the finished goods accounts and then into the cost of goods sold account. The relevant accounts are as follows:
Cost of Goods Sold
Materials
Factory OverheadSmelting Department
Factory OverheadRolling Department
Factory OverheadConverting Department
Finished GoodsRolled Sheet
Finished GoodsSheared Sheet
Work in ProcessSmelting Department
Work in ProcessRolling Department
Work in ProcessConverting Department
Answer the following questions.
Materials flow to which department?
The costs from Factory OverheadConverting Department flow to which department?
The costs from Work in processSmelting Department flow to which department?
The costs from Finished GoodsSheared Sheet flow to which account?
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