The cost of materials transferred into the Rolling Department of Keystone Steel

Question

The cost of materials transferred into the Rolling Department of Keystone Steel Company is $510,000 from the Casting Department. The conversion cost for the period in the Rolling Department is $81,200 ($54,700 factory overhead applied and $26,500 direct labor). The total cost transferred to Finished Goods for the period was $553,200. The Rolling Department had a beginning inventory of $25,000. On June 30, journalize the cost of transferred-in materials. * On June 30, journalize the conversion costs. * On June 30, journalize the costs transferred out to Finished Goods. * Refer to the Chart of Accounts for exact wording of account titles. Determine the balance of Work in Process-Rolling at the end of the period.

Explanation / Answer

Dr Cr A 1) Work in Process--Rolling 510000 Work in Process--Casting 510000 A 2) Work in Process--Rolling 81200 Factory Overhead--Rolling 54700 Wages Payable 26500 A 3) Finished Goods 553200 Work in Process--Rolling 553200 B ) $25000+ 510000 + 81200 - 553200 =63000

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