Chapter 5, Problem 5.49BE

Complete five-step procedure and journalize result (Learning Objectives 3 &4)

The following information was taken from the ledger of Denver Foundry:

5.3-39 Full Alternative Text

The Forming Department had 10,470 partially complete units in beginning work in process inventory. The department started work on 67,530 units during the month and ended the month with 9,000 units still in work in process. These unfinished units were 60% complete as to direct materials but 20% complete as to conversion work, The beginning balance of $71,110 consisted of $21,510 of direct materials and $49,600 of conversion costs.

Requirement

Journalize the transfer of costs to the Finishing Department. (Hint Complete the five-step process costing procedure to determine how much cost to transfer.)