The cost of materials transferred into the Filling Department of Savannah Lotion

Question

The cost of materials transferred into the Filling Department of Savannah Lotion Company is $13,300, including $5,000 from the Blending Department and $8,300 from the materials storeroom. The conversion cost for the period in the Filling Department is $3,100 ($1,100 factory overhead applied and $2,000 direct labor). The total cost transferred to Finished Goods for the period was $17,378. The Filling Department had a beginning inventory of $1,200. Determine the balance of Work in Process -Filling at the end of a period.

Explanation / Answer

Determination balance of Work in process - Filling at the end of a period In $ Opening balance            1,200 (+) Cost transferred from Blending department            5,000 (+) Cost transferred from materials department            8,300 (+) Direct Labour incurred            2,000 (+) Factory Overhead applied            1,100 (-) Cost transferred to Finished Goods Department        -17,378 Balance in Work in process at the end                222

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