Asked by Michelle Carnes on May 20, 2024
Verified
The cost of materials transferred into the Bottling Department of Mountain Springs Water Company is $32,400, with $26,000 from the Purifying Department, plus an additional $6,400 from the materials storeroom. The conversion cost for the period in the Bottling Department is $8,750
($3,750 factory 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 the cost of transferred-in materials, conversion costs, and the cost transferred out to finished goods.
(b)Determine the balance of Work in Process-Bottling at the end of the period.
Conversion Cost
The combined cost of direct labor and manufacturing overheads, representing the total expense to convert raw materials into finished goods.
Transferred-In Materials
The costs of materials that were processed in a prior production department and then moved to a subsequent process or department.
- Understand the procedure for allocating costs among departments and towards completed products.
- Describe the flow and tracking of materials through a process cost accounting system.
Verified Answer
TW
Learning Objectives
- Understand the procedure for allocating costs among departments and towards completed products.
- Describe the flow and tracking of materials through a process cost accounting system.
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