Answer:
Explanation:
Bottling dept Costs Amt $
Beginning Inventory 1,860
Materials costs
Add Material_purifying 26,000
Stores Materials 6,400
Conversion costs
Direct Labor 5,000
Fact OH applied 3,750
Total Production cost 43,010
Transferred out to FG 31,980
WIP in Bottling 11,030
Journal Entry
Account Dr $ Cr $
1 Materials transfer In
WIP Bottling (Materials) 26,000
Transfer out Purify to Bottling 26,000
( materials trsfd from Purifying to bottling)
Inventory 6,400
WIP Bottling (Materials) 6,400
(Materials issue from stores)
2 Coversion costs
WIP Bottling (direct labor) 5,000
Direct wages Payable 5,000
(direct labor cost )
WIP Bottling (Overhead applied) 3,750
Overhead Control A/C 3,750
(OH applied)
3 Transfer Out
Finished Goods 31,980
WIP Bottling 31,980
WIP in bottling at month end is $ 11,030.00