Concept explainers
Exercise 20-25 Recording cost flows in a
Re-Tire produces bagged mulch made from recycled tires. Production involves shredding tires and bagging the pieces in the Bagging department. All direct materials enter in the Shredding process. The following describes production operations for October.
1 | A | B |
2 | Direct materials used (Shredding) | $ 522.000 |
3 |
Direct labor used (20% in Shredding: GD% in Bagging | $130.000 |
4 | Predetermined |
175% |
5 | Transferred to Bagging | $ 595.000 |
6 | Transferred from Bagging to finished goods | $580.000 |
The company's revenue for the month totaled $950.000 from credit sales, and its cost of goods sold for the month is $540.000. Prepare summary
Check (3: Cr. Factory Overhead, 35227.500
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