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Problem - The cost of materials transferred into the Bottling Department of Rocky Springs Beverage Company is $22,800, including $20,000 from the Blending Department and $2,800 from the materials storeroom. The conversion cost for the period in the Bottling Department is $8,790 ($3,790 factory overhead 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 (1) the cost of transferred-in materials, (2) conversion costs, and (3) the costs transferred out to Finished Goods.
b. Determine the balance of Work in Process-Bottling at the end of the period.
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