Process Cost Journal Entries The cost of materials transferred into the Rolling Department of Blackrock Steel Company is $625,500 from the Casting Department. The conversion cost for the period in the Rolling Department is $157,680 ($94,600 factory overhead applied and $63,080 direct labor). The total cost transferred to Finished Goods for the period was $724,000. The Rolling Department had a beginning inventory of $38,020. a1. Journalize the cost of transferred-in materials. If an amount box does not require an entry, leave it blank. Work in Process-Rolling Work in Process-Casting a2. Journalize the conversion costs. If an amount box does not require an entry, leave it blank. Work in Process-Rolling Factory Overhead-Rolling Wages Payable a3. Journalize the costs transferred out to Finished Goods. If an amount box does not require an entry, leave it blank. Finished Goods Work in Process-Rolling b. Determine the balance of Work in Process—Rolling at the end of the period. $
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
The cost of materials transferred into the Rolling Department of Blackrock Steel Company is $625,500 from the Casting Department. The conversion cost for the period in the Rolling Department is $157,680 ($94,600 factory overhead applied and $63,080 direct labor). The total cost transferred to Finished Goods for the period was $724,000. The Rolling Department had a beginning inventory of $38,020.
a1. Journalize the cost of transferred-in materials. If an amount box does not require an entry, leave it blank.
| Work in Process-Rolling | |||
| Work in Process-Casting |
a2. Journalize the conversion costs. If an amount box does not require an entry, leave it blank.
| Work in Process-Rolling | |||
| Factory Overhead-Rolling | |||
| Wages Payable |
a3. Journalize the costs transferred out to Finished Goods. If an amount box does not require an entry, leave it blank.
| Finished Goods | |||
| Work in Process-Rolling |
b. Determine the balance of Work in Process—Rolling at the end of the period.
$
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