Maurice Tutor

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Category > Accounting Posted 19 Aug 2017 My Price 12.00

Elijah Inc.

56.     LO.2 & LO.4 (Cost flows: multiple departments) Elijah Inc. produces accent stripes for automobiles in 50-inch rolls. Each roll passes through three departments (Striping, Adhesion, and Packaging) before it is ready for shipment to customers. Product costs are tracked by department and assigned using a process costing system. Overhead is applied to production in each department at a rate of 80 percent of the department’s direct labor cost.

The following T-account information pertains to departmental operations for June 2010:

 

Work in Process—Striping                                        Work in Process—Adhesion

 

          

Work in Process—Packaging                                                Finished Goods

 

Beginning Transferred in DM

150,000

?

?

 

 

CGM

 

 

?

 

Beginning TI

185,000

880,000  ?              720,000

DL

Overhead

? 90,000

 

 

 

 

Ending

 

?

Ending

40,000

 

 

 

 

 

 

a.     What was the cost of goods transferred from the Striping Department to the Adhesion Department for the month?

b.    How much direct labor cost was incurred in the Adhesion Department? How much overhead was assigned to production in the Adhesion Department for the month?

c.     How much direct material cost was charged to products in the Packaging Department?

d.    Prepare the journal entries for all interdepartmental transfers of products and the cost of the units sold during June 2010.

Answers

Maurice Tutor
(5)
Status NEW Posted 19 Aug 2017 12:08 AM My Price 12.00

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