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Process Cost Journal Entries

In October, the cost of materials transferred into the Rolling Department from the Casting Department of Kraus Steel Company is $576,000. The conversion cost for the period in the Rolling Department is $107,100 ($60,000 factory overhead applied and $47,100 direct labor). The total cost transferred to Finished Goods for the period was $600,000. The Rolling Department had a beginning inventory of $20,900.

a1. Journalize the cost of transferred-in materials. If an amount box does not require an entry, leave it blank.

	Work in Process-Rolling	fill in the blank 7691fb05100d000_2	fill in the blank 7691fb05100d000_3
	Work in Process-Casting	fill in the blank 7691fb05100d000_5	fill in the blank 7691fb05100d000_6

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Remember there are three classifications of inventory, raw materials, work in process, and finished goods.

a2. Journalize the conversion costs. If an amount box does not require an entry, leave it blank.

	Work in Process-Rolling	fill in the blank a468cdfc8ffc015_2	fill in the blank a468cdfc8ffc015_3
	Factory Overhead-Rolling	fill in the blank a468cdfc8ffc015_5	fill in the blank a468cdfc8ffc015_6
	Wages Payable	fill in the blank a468cdfc8ffc015_8	fill in the blank a468cdfc8ffc015_9

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a3. Journalize the costs transferred out to Finished Goods. If an amount box does not require an entry, leave it blank.

	Finished Goods	fill in the blank bada6309302ef82_2	fill in the blank bada6309302ef82_3
	Work in Process-Rolling	fill in the blank bada6309302ef82_5	fill in the blank bada6309302ef82_6

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Now that the units are completed how will that affect the asset accounts of the business? Remember there are three types of inventory, raw materials, work in process, and finished goods.

b. Determine the balance of Work in ProcessRolling at the end of the period. $fill in the blank 7ea3f4f91f9efb9_1

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Recall that the work in process account represents all the costs associated with units that have been started during the period but have not been completed and transferred out.

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