Process Cost Journal Entries

The cost of materials transferred into the Rolling Department of Keystone Steel Company is $519,300 from the Casting Department. The conversion cost for the period in the Rolling Department is $112,500 ($67,700 factory overhead applied and $44,800 direct labor). The total cost transferred to Finished Goods for the period was $621,600. The Rolling Department had a beginning inventory of $22,400.

a1. Journalize the cost of transferred-in materials.

	Accounts Payable Cash Factory Overhead-Casting Factory Overhead-Rolling Finished Goods Materials Work in Process-Casting Work in Process-Rolling
	Accounts Payable Cash Factory Overhead-Casting Factory Overhead-Rolling Finished Goods Materials Wages Payable Work in Process-Casting Work in Process-Rolling

Feedback

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

	Accounts Payable Cash Factory Overhead-Casting Factory Overhead-Rolling Finished Goods Materials Wages Payable Work in Process-Casting Work in Process-Rolling
	Accounts Payable Cash Factory Overhead-Casting Factory Overhead-Rolling Finished Goods Materials Work in Process-Casting Work in Process-Rolling
	Accounts Payable Cash Factory Overhead-Casting Finished Goods Materials Wages Payable Work in Process-Casting Work in Process-Rolling

Feedback

a3. Journalize the costs transferred out to Finished Goods.

	Accounts Payable Cash Factory Overhead-Casting Factory Overhead-Rolling Finished Goods Materials Wages Payable Work in Process-Casting Work in Process-Rolling
	Accounts Payable Cash Factory Overhead-Casting Factory Overhead-Rolling Finished Goods Materials Wages Payable Work in Process-Casting Work in Process-Rolling

Feedback

b. Determine the balance of Work in ProcessRolling at the end of the period. $