Managerial accounting -Urgent

Eagle Co. manufactures bentwood chairs and tables. Wood for both products is steam-bent in the same process, but different types of wood are used for each product. Thus, materials cost is identified separately to each product. One production cycle uses 20 board feet. Labor cost is identified to the process as a whole, as is overhead cost. Data for the month of July follow:

Chairs
Tables
Direct material cost per board foot
$ 3.60
$ 4.20
Number of parts formed per production cycle (20 board feet)
10
8
Actual operating hours in July
120
380
Parts produced during July
4,000
9,000

Budgeted annual conversion cost:
Labor
$150,000
Utilities
125,000
Depreciation
65,000
Other overhead
50,000
Total
$390,000

Budgeted annual operating hours for steam-bending
5,200

(a) Compute July's predetermined rate for the steam-bending process.
(b) Compute July's direct material costs for chairs and tables.
(c) Compute conversion costs to be applied to chairs and tables in July.
(d) Journalize the following entries:
(1) Assignment of direct materials to chairs and tables.
(2) Application of conversion costs to chairs and tables.
(3) The transfer of completed chairs and tables to the Finishing Department. All of July's production was completed in July.

Answer

Submitted by tanzeelafzal02 on Sun, 2012-03-11 08:09

teacher rated 3 times

5

purchased 8 times

price: $3.00

100% with workings

body preview (0 words)

file1.docx preview (333 words)

Eagle Co. manufactures xxxxxxxx chairs and xxxxxxx  Wood for both products xx steam-bent xx xxx xxxx xxxxxxxx but different types xx wood are xxxx xxx xxxx product.  xxxxx xxxxxxxxx cost is identified xxxxxxxxxx xx xxxx product.  One xxxxxxxxxx xxxxx uses xx xxxxx feet.  Labor cost is identified xx the process as a whole, xx is overhead cost.  Data for the xxxxx xx July follow:

xxxxxxxxxxxxxxx

	Chairs	xxxxxx
xxxxxx xxxxxxxx cost per xxxxx xxxx	$   xxxx	x      xxxx
xxxxxx of parts formed xxx xxxxxxxxxx cycle xxx board xxxxx	xx	x
xxxxxx xxxxxxxxx xxxxx xx July	xxx	xxx
Parts produced during xxxx	xxxxx	9,000
xxxxxxxx annual conversion xxxxx
Labor		xxxxxxxx
Utilities		125,000
Depreciation		65,000
xxxxx overhead		xxxxxx
- - - more text follows - - -

Buy this answer

Try it before you buy it Check plagiarism for $2.00