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Question - The cost of materials transferred into the Bottling Department of Mountain Springs Water Company is $28,400, with $22,000 from the Purifying Department, plus additional $6,400 from the materials storeroom. The conversion cost for the period in the Bottling Department is $8,750 ($3,750 factory applied and $5,000 direct labor.) The total costs 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 cost of transferred out to finished goods.
b. Determine the balance of Work in Process-Bottling at the end of the period.
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