Taylor Tackers uses process costing. It produces a tacker used by movers to seal boxes. Taylor has almost no inventories of material, work in process, or finished goods. The balances are so small that the company treats them as zero for purposes of its accounting reports. During July, the company produced and shipped 13,000 tackers at a cost of $13.50 per tacker. The cost consisted of 20 percent material cost, 25 percent labor cost, and 55 percent manufacturing overhead. Prepare journal entries to record the following: a. Issuance of direct material Cost of direct labor accrued Application of manufacturing overhead d. Completion of units in process and their transfer to Finished Goods Cost of goods sold b. C. 0.

Taylor Tackers uses process costing. It produces a tacker used by movers to seal boxes. Taylor has almost no inventories of material, work in process, or finished goods. The balances are so small that the company treats them as zero for purposes of its accounting reports. During July, the company produced and shipped 13,000 tackers at a cost of $13.50 per tacker. The cost consisted of 20 percent material cost, 25 percent labor cost, and 55 percent manufacturing overhead. Prepare journal entries to record the following: a. Issuance of direct material Cost of direct labor accrued Application of manufacturing overhead d. Completion of units in process and their transfer to Finished Goods Cost of goods sold b. C. 0.

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Description: SOLVE ALL QUESTIONS OTHERWISE LEAVE IT Taylor Tackers uses process costing. It produces a tacker used by movers to seal boxes. Taylor has almost no inventories of material, work in process, or finished goods. The balances are so small that the compan

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter2: Accounting For Materials

Section: Chapter Questions

Problem 15E: Kenkel, Ltd. uses backflush costing to account for its manufacturing costs. The trigger points are...

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During the week of June 12, Harrison Manufacturing produced and shipped 15,000 units of its aluminum wheels: 3,000 units of Model A and 12,000 units of Model B. The following costs were incurred: Required: 1. Assume initially that the value-stream costs and total units shipped apply only to one model (a single-product value stream). Calculate the unit cost, and comment on its accuracy. 2. Calculate the unit cost for Models A and B, and comment on its accuracy. Explain the rationale for using units shipped instead of units produced in the calculation. 3. What if Model A is responsible for 40 percent of the materials cost? Show how the unit cost would be adjusted for this condition.
Rulers Company is a neon sign company that estimated overhead will be $60,000, consisting of 1,500 machine hours. The cost to make Job 416 is $95 in neon, 15 hours of labor at $13 per hour, and five machine hours. During the month, it incurs $95 in indirect material cost, $130 in administrative labor, $320 in utilities, and $350 in depreciation expense. What is the predetermined overhead rate if machine hours are considered the cost driver? What is the cost of Job 416? What is the overhead incurred during the month?
Kenkel, Ltd. uses backflush costing to account for its manufacturing costs. The trigger points are the purchase of materials, the completion of goods, and the sale of goods. Prepare journal entries to account for the following: a. Purchased raw materials, on account, 80,000. b. Requisitioned raw materials to production, 80,000. c. Distributed direct labor costs, 10,000. d. Factory overhead costs incurred, 60,000. (Use Various Credits for the account in the credit part of the entry.) e. Completed all of the production started. f. Sold the completed production for 225,000, on account.
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Kildeer Company makes easels for artists. During the last calendar year, a total of 30,000 easels were made, and 31,000 were sold for 52 each. The actual unit cost is as follows: The selling expenses consisted of a commission of 1.30 per unit sold and advertising copayments totaling 95,000. Administrative expenses, all fixed, equaled 183,000. There were no beginning and ending work-in-process inventories. Beginning finished goods inventory was 132,600 for 3,400 easels. Required: 1. Calculate the number and the dollar value of easels in ending finished goods inventory. 2. Prepare a cost of goods sold statement. 3. Prepare an absorption-costing income statement. Add a column for percentage of sales.
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