Solution-What is the total cost of goods sold for the month

What is the total cost of goods sold for the month

Assignment Help Cost Accounting

Reference no: EM13890257

Auto Parts Company produces 12 parts for car bodies and sells them to four auto- mobile assembly companies in Canada. The company implemented lean operating and costing procedures three years ago. Overhead is applied at a rate of $26 per work cell hour used. All direct materials and purchased parts are used as they are received.

One of the company's work cells produces automotive fenders that are completely detailed and ready to install when received by the customer. The cell is operated by four employees and involves a flexible manufacturing system with 14 workstations. Operating details for February for this cell follow.

Beginning work in process inventory	-
Beginning finished goods inventory	$420
Cost of direct materials purchased on account and used	$213,400
Cost of parts purchased on account and used	$111,250
Direct labor costs incurred	$26,450
Overhead costs assigned	?
Work cell hours used	8,260
Costs of goods completed during February	$564,650
Ending work in process inventory	$1,210
Ending finished goods inventory	$670

Required:

1. Using T accounts, show the cost flows through a backflush costing system.

2. Using T accounts, show the cost flows through a traditional costing system.

3. What is the total cost of goods sold for the month?

Reference no: EM13890257

Questions Cloud

Capital budgeting decision crucial and important for firm : Why is the capital budgeting decision crucial and important for a firm? State why the capital budgeting errors are so costly? Suntex Berhad is considering a major expansion of its production line and has estimated the following free cash flows associ..

Determine the cost per equivalent unit of direct materials : Determine the cost per equivalent unit of direct materials and conversion

What is the most you should pay per share : The dividend for Weaver, Inc., is expected to grow at 22 percent for the next 4 years before leveling off at a 5.1 percent rate indefinitely. If the firm just paid a dividend of $1.3 and you require a return of 14 percent on the stock, what is the mo..

What is the stocks expected rate of return : Roger Bhd’s common stock is selling for RM29.50 and recently paid dividends of RM1.75 per share. The company has an expected growth rate of 4 percent. What is the stocks expected rate of return? Should you make the investment if your required rate of..

What is the total cost of goods sold for the month : Using T accounts, show the cost flows through a backflush costing system. Using T accounts, show the cost flows through a traditional costing system. What is the total cost of goods sold for the month?

Long term or short term credit riskier : COLLAPSE From the standpoint of the borrower; is long term or short term credit riskier? Would it ever make sense to borrow on a short term basis if short term rates were above long term rates?

Cash liquidity to fund any margin calls : Suppose a farmer is expecting that her crop of oranges will be ready for harvest and sale as 150,000 pounds of orange juice in 3 months time. Suppose each orange juice futures contract is for 15,000 pounds of orange juice, and the current futures pri..

What are the potential benefits of applying cvp analysis : What are the potential benefits of applying CVP analysis to business decision making?

Compute the total direct cost and the direct cost per unit : Assume that the costs incurred in the lean operating environment are for a work cell that completed 1,250 toy cars in December. Compute the total direct cost and the direct cost per unit for the cars produced.

User Account

All Pages

What is the total cost of goods sold for the month

Reference no: EM13890257

Reference no: EM13890257

Questions Cloud

Reviews

Write a Review

Cost Accounting Questions & Answers

Cost accounting assignment

Prepare the journal entries

Advise as to the liability of all the parties

Prepare revenues budget

Effect of exchange rate changes on cash and cash

Corporate governance

Cost-benefit analysis

Non-annual interest rates and annuities

Job costing in service organizations

Accounting for bad debt expense

Accounting and partnership problems

Development of relevant cash flows

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT