Alcoa Inc. is the world’s largest producer of aluminum products. One product that Alcoa manufactures is aluminum sheet products for the aerospace industry. The entire output of the Smelting Department is transferred to the Rolling Department. Part of the fully processed goods from the Rolling Department are sold as rolled sheet, and the remainder of the goods are transferred to the Converting Department for further processing into sheared sheet.
Prepare a chart of the flow of costs from the processing department accounts into the finished goods accounts and then into the cost of goods sold account. The relevant accounts are as follows:

Cost of Goods Sold Finished Goods—Rolled Sheet
Materials Finished Goods—Sheared Sheet
Factory Overhead—Smelting Department Work in Process—Smelting Department
Factory Overhead—Rolling Department Work in Process—Rolling Department
Factory Overhead—Converting Department Work in Process—Converting Department