Question

1428 points Soune Components recently wached to active based costing from the department canon had the con Department a n d the Marts handing Machines Hunsing machines pectos of machine Deci materials costs were 5304,000 and decor costs were $158.000 dung when Fanation Department 1.700 pounds co d User accounts to show the of manera labor and overhead costs from the four overhead a cr o ga Work in Process inventory and the doo r Overhead Applied Material Handling Overhead Applied:

Answer 1

Materials Inventory					Wages payable
Beg.Bal.		$ 0			Beg.Bal.		$ 0
		$ 304,000	Work in process				$ 158,000	Work in process
End.Bal.		$ 304,000			End.Bal.		$ 158,000
Overhead Applied :Materials handling					Overhead Applied: Quality Inspections
Beg.Bal.		$ 0			Beg.Bal.		$ 0
		$ 55,500	Work in process				$ 153,300	Work in process
		(3700*$15)					( 730* $ 210)
End.Bal.		$ 55,500			End.Bal.		$ 153,300
Overahead Applied: Machine setups					Overhead Applied : Running machines
Beg.Bal.		$ 0			Beg.Bal.		$ 0
		$ 80,000	Work in process				$ 315,000	Work in process
		(40*$ 2000)					(15000*$21)
End.Bal.		$ 80,000			End.Bal.		$ 315,000
Work in process(WIP)inventory fabrication department					Finished Goods inventory
Beg.Bal.	$ 0				Beg.Bal.	$ 0
Direct materials	$ 304,000	$ 1,065,800	Finished goods inventory		Work in process	$ 1,065,800
Direct Labor	$ 158,000	(Bal. in Fig)				(Transferred)
Materials handling overhead	$ 55,500
Quality inspections overhead	$ 153,300
Machine setup overhead	$ 80,000
Running machines overhead	$ 315,000
End.Bal.	$ 0				End.Bal.	$ 1,065,800