Question 18.7: The cost of materials transferred into the Bottling Departme...
The cost of materials transferred into the Bottling Department of Rocky Springs Beverage Company is $22,800, including $20,000 from the Blending Department and $2,800 from the materials storeroom. The conversion cost for the period in the Bottling Department is $8,790 ($3,790 factory overhead applied and $5,000 direct labor). The total cost transferred to Finished Goods for the period was $31,980. The Bottling Department had a beginning inventory of $1,860.
a. Journalize (1) the cost of transferred-in materials, (2) conversion costs, and (3) the costs transferred out to Finished Goods.
b. Determine the balance of Work in Process—Bottling at the end of the period.
a. 1. Work in Process—Bottling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,800
Work in Process—Blending. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000
Materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,800
2. Work in Process—Bottling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,790
Factory Overhead—Bottling. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,790
Wages Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000
3. Finished Goods. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31,980
Work in Process—Bottling. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31,980
b. $1,470 ($1,860 + $22,800 + $8,790 – $31,980)