Ask Question
29 July, 06:10

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. Required:

a. Journalize the entries to record the cost of transferred-in materials, conversion costs, and the cost transferred out to finished goods. Refer to the Chart of Accounts for exact wording of account titles.

b. Determine the balance of Work in Process-Bottling at the end of the period.

+1
Answers (1)
  1. 29 July, 06:20
    0
    Bottling dept Costs Amt $

    Beginning Inventory 1,860

    Materials costs

    Add Material_purifying 26,000

    Stores Materials 6,400

    Conversion costs

    Direct Labor 5,000

    Fact OH applied 3,750

    Total Production cost 43,010

    Transferred out to FG 31,980

    WIP in Bottling 11,030

    Journal Entry

    Account Dr $ Cr $

    1 Materials transfer In

    WIP Bottling (Materials) 26,000

    Transfer out Purify to Bottling 26,000

    (materials trsfd from Purifying to bottling)

    Inventory 6,400

    WIP Bottling (Materials) 6,400

    (Materials issue from stores)

    2 Coversion costs

    WIP Bottling (direct labor) 5,000

    Direct wages Payable 5,000

    (direct labor cost)

    WIP Bottling (Overhead applied) 3,750

    Overhead Control A/C 3,750

    (OH applied)

    3 Transfer Out

    Finished Goods 31,980

    WIP Bottling 31,980

    WIP in bottling at month end is $ 11,030.00
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “The cost of materials transferred into the Bottling Department of Mountain Springs Water Company is $32,400, with $26,000 from the ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers