Question

The cost of materials transferred into the Filling Department of Eve Cosmetics Company is $19,900, including $5,400 from the Blending Department and $14,500 from the materials storeroom. The conversion cost for the period in the Filling Department is $6,440 ($1,440 factory overhead applied and $5,000 direct labor). The total cost transferred to Finished Goods for the period was $25,640. The Filling Department had a beginning inventory of $2,600.

Required:

A.	(1) On June 30, journalize the cost of transferred-in materials.* (2) On June 30, journalize the conversion costs.* (3) On June 30, journalize the costs transferred out to Finished Goods.* *Refer to the Chart of Accounts for exact wording of account titles.
B.	Determine the balance of Work in Process-Filling at the end of the period.

Answer 1

Answer
Journal entry
A
Date	Account Titles and Explanations	Debit	Credit
Jun-30	Work in Process - Filling Department	$      19,900
	To, Work in Process - Blending Department		$        5,400
	To, Stock		$      14,500
	( To record transfer of Raw material & WIP of Filling Department to WIP )
Jun-30	Work in Process - Filling Department	$        6,440
	To, Factory overhead A/c		$        1,440
	To, Direct Labour A/c		$        5,000
	( To record conversion cost charged to the WIP )
Jun-30	Finished Goods	$      25,640
	To, Work in Process - Filling Department		$      25,640
	( To record WIP transferred out to finished goods )
B	Determination balance of Work in process - Filling at the end of a period
	Opening Balance	$        2,600
	Add - Material charged	$      19,900
	Add - Overhead charged	$        6,440
	Less - transfer to finished goods	$     -25,640
	Balance in Work in process at the end of a period	$        3,300

Please Like