Question

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 Process—Rolling at the end of the period.
$

Answer 1

	Journal Entries
	General,Journal	Debit	Credit
a1)	WIP-Rolling Department	$ 5,19,300.00
	To WIP-Casting Department		$ 5,19,300.00
	(Being amount cost of material transferred from casting department to Rolling Department)
a2	WIP-Rolling Department	$ 1,12,500.00
	To Factory Overhead-Rolling Department		$     67,700.00
	To Wages Payable		$     44,800.00
	(Being amount of conversion cost of rolling department is $112500 consist of $67700 factory overhead and $44800 Direct Labor cost)
a3)	Finished goods	$ 6,21,600.00
	To WIP -Rolling Department		$ 6,21,600.00
	(Being amount of total cost transferred to finished goods)
b)		Balance of WIP at the end of the period
	Description	Debit	Credit	Balance
	Beginning Balance			$     22,400.00
	WIP-Casting Department	$ 5,19,300.00		$ 5,41,700.00
	Factory Overhead	$     67,700.00		$ 6,09,400.00
	Wages Payable	$     44,800.00		$ 6,54,200.00
	Finished goods		$ 6,21,600.00	$     32,600.00
	Balance of WIP at the end of the period is	$     32,600.00