Question

Process Cost Journal Entries The cost of materials transferred into the Rolling Department of Keystone Steel Company is $560,700 from the Casting Department. The conversion cost for the period in the Rolling Department is $104,400 ($60,100 factory overhead applied and $44,300 direct labor). The total cost transferred to Finished Goods for the period was $690,700. The Rolling Department had a beginning inventory of $28,300. a1. Journalize the cost of transferred-in materials. a2. Journalize the conversion costs. If an amount box does not require an entry, leave it blank. a3. Journalize the costs transferred out to Finished Goods. b. Determine the balance of Work in Process—Rolling at the end of the period. $

Answer 1

a1	Work in process-Rolling	560700
	Work in process-Casing		560700
a2	Work in process-Rolling	104400
	Factory overhead-Rolling		60100
	Wages Payable		44300
a3	Finished goods	690700
	Work in process-Rolling		690700
b	Balance in Work in Process—Rolling	2700	=28300+560700+104400-690700