automotive parts company produces 12 parts for car bodies and sells them to three au 544636
Back flush Costing
Automotive Parts Company produces 12 parts for car bodies and sells them to three automobile assembly companies in the United States. 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.
Don't use plagiarized sources. Get Your Custom Essay on
automotive parts company produces 12 parts for car bodies and sells them to three au 544636
For $10/Page 0nly
One of the company’s work cells produces automobile 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 are as follows:
|
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 back flush 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?
Calculator
Our features
We've got everything to become your favourite writing service
Money back guarantee
Your money is safe. Even if we fail to satisfy your expectations, you can always request a refund and get your money back.
Confidentiality
We don’t share your private information with anyone. What happens on our website stays on our website.
Our service is legit
We provide you with a sample paper on the topic you need, and this kind of academic assistance is perfectly legitimate.
Get a plagiarism-free paper
We check every paper with our plagiarism-detection software, so you get a unique paper written for your particular purposes.
We can help with urgent tasks
Need a paper tomorrow? We can write it even while you’re sleeping. Place an order now and get your paper in 8 hours.
Pay a fair price
Our prices depend on urgency. If you want a cheap essay, place your order in advance. Our prices start from $11 per page.