Chapter 3, Problem 7BE

In October, the cost of materials transferred into the Rolling Department from the Casting Department of Kraus Steel Company is $3,000,000. The conversion cost for the period in the Rolling Department is $462,600 ($275,000 factory overhead applied and $187,600 direct labor). The total cost transferred to Finished Goods for the period was $3,392,400. The Rolling Department had a beginning inventory of $163,800.

1. a. Journalize for the Rolling Department (1) the cost of transferred-in materials, (2) the conversion costs, and (3) the costs transferred out to Finished Goods.
2. b. Determine the balance of Work in Process—Rolling at the end of the period.