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Process Cost Journal Entries

In October, the cost of materials transferred into the Rolling Department from the Casting Department of Kraus Steel Company is $554,900. The conversion cost for the period in the Rolling Department is $110,300 ($63,800 factory overhead applied and $46,500 direct labor). The total cost transferred to Finished Goods for the period was $600,000. The Rolling Department had a beginning inventory of $29,300.

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a1. Journalize the cost of transferred-in materials. If an amount box does not require an entry, leave it blank.

blankAccounts PayableCashFactory Overhead-CastingFactory Overhead-RollingFinished GoodsMaterialsWork in Process-CastingWork in Process-RollingWork in Process-RollingWork in Process-RollingWork in Process-Rolling Accounts PayableCashFactory Overhead-CastingFactory Overhead-RollingFinished GoodsMaterialsWages PayableWork in Process-CastingWork in Process-RollingWork in Process-CastingWork in Process-CastingWork in Process-Casting

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

blankAccounts PayableCashFactory Overhead-CastingFactory Overhead-RollingFinished GoodsMaterialsWages PayableWork in Process-CastingWork in Process-RollingWork in Process-RollingWork in Process-RollingWork in Process-Rolling Accounts PayableCashFactory Overhead-CastingFactory Overhead-RollingFinished GoodsMaterialsWork in Process-CastingWork in Process-RollingFactory Overhead-RollingFactory Overhead-RollingFactory Overhead-Rolling Accounts PayableCashFactory Overhead-CastingFinished GoodsMaterialsWages PayableWork in Process-CastingWork in Process-RollingWages PayableWages PayableWages Payable

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Remember there are three classifications of inventory, Raw Materials, Work in Process, and Finished Goods. Costs accumulate and are transferred from one department to the next.

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a3. Journalize the costs transferred out to Finished Goods. If an amount box does not require an entry, leave it blank.

blankAccounts PayableCashFactory Overhead-CastingFactory Overhead-RollingFinished GoodsMaterialsWages PayableWork in Process-CastingWork in Process-RollingFinished GoodsFinished GoodsFinished Goods Accounts PayableCashFactory Overhead-CastingFactory Overhead-RollingFinished GoodsMaterialsWages PayableWork in Process-CastingWork in Process-RollingWork in Process-RollingWork in Process-RollingWork in Process-Rolling

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b. Determine the balance of Work in ProcessRolling at the end of the period. $fill in the blank ac49d104ffb3072_1