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Obj. 3 Example Exercise 20-7 Process Cost Journal Entries 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. 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 ProcessBottling at the end of the period. Follow My Example 20-7 22,800 20,000 2,800 8,790 a. 1. Work in ProcessBottling. Work in ProcessBlending. Materials.. 2. Work in ProcessBottling Factory Overhead-Bottling. Wages Payable... 3. Finished Goods.... Work in ProcessBottling.. b. $1,470 ($1,860 + $22,800 + $8,790 $31,980) 3,790 5,000 31,980 31,980 Practice Exercises: PE 20-7A, PE 20-7B PE 20-7B Process cost journal entries OBJ. 3 The cost of materials transferred into the Rolling Department of Keystone Steel Company is $510,000 from the Casting Department. The conversion cost for the period in the Roll- ing Department is $81,200 ($54,700 factory overhead applied and $26,500 direct labor). The total cost transferred to Finished Goods for the period was $553,200. The Rolling Department had a beginning inventory of $25,000. 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 ProcessRolling at the end of the period. Example Exercise 20-8 Using Process Costs for Decision Making Obj. 4 The cost of energy consumed in producing good units in the Bottling Department of Rocky Springs Beverage Company was $4,200 and $3,700 for March and April, respectively. The number of equivalent units produced in March and April was 70,000 liters and 74,000 liters, respectively. Evaluate the change in the cost of energy between the two months. Follow My Example 20-8 $4,200 Energy cost per liter, March $0.06 70,000 liters $3,700 Energy cost per liter, April = $0.05 74,000 liters The cost of energy has improved by 1 cent per liter between March and April. Practice Exercises: PE 20-8A, PE 20-8B PE 20-8B Using process costs for decision making OBJ. 4 The costs of materials consumed in producing good units in the Forming Department of Thomas Company were $76,000 and $77,350 for September and October, respectively. The number of equivalent units produced in September and October was 800 tons and 850 tons, respectively. Evaluate the change in the cost of materials between the two months

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