Cost Journal Entries
In July, the cost of materials transferred into the Rolling Department from the Casting Department of Oak Ridge Steel Company is $432,000. The conversion cost for the period in the Rolling Department is $144,150 ($54,700 factory overhead applied and $89,450 direct labor). The total cost transferred to Finished Goods for the period was $553,750. The Rolling Department had a beginning inventory of $80,000.
a1. Journalize the cost of transferred-in materials.
Work in Process-Rolling 432000
Work in Process-Casting 432000
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a2. Journalize the conversion costs. If an amount box does not require an entry, leave it blank.
Work in Process-Rolling 144150
Factory Overhead-Rolling 54700
Wages Payable 89450
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a3. Journalize the costs transferred out to Finished Goods.
Finished Goods 553750
Work in Process-Rolling 553750
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b. Determine the balance of Work in Process-Rolling at the end of the period.
$
Journalize the costs transferred out to Finished Goods.
Finished Goods