Question

Process Cost Journal Entries

The cost of materials transferred into the Rolling Department of Keystone Steel Company is $593,800 from the Casting Department. The conversion cost for the period in the Rolling Department is $113,900 ($65,600 factory overhead applied and $48,300 direct labor). The total cost transferred to Finished Goods for the period was $666,400. The Rolling Department had a beginning inventory of $25,400.

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

Date	Account title	Debit	credit
a-1	Work in process inventory-rolling department	593800
	Work in process inventory -casting department		593800
a-2	Work in process inventory-rolling department	113900
	Factory overhead		65600
	Factory labor		48300
a-3	Finished goods inventory	666,400
	Work in process inventory-rolling department		666400

b)Work in process -Rolling department at end =Beginning WIP +Cost of transferred in + conversion cost incurred- cost of goods transferred to finished goods inventory

        = 25400 + 593800 + 113900 - 666400

        = 66700