good morning enterprises produces digital alarm clocks 544629
Back flush Costing
Good Morning Enterprises produces digital alarm clocks. It has a just-in-time assembly process and uses back flush costing to record production costs. Overhead is assigned at a rate of $17 per assembly labor hour. There were no beginning inventories in March. During March, the following operating data were generated:
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|
Cost of direct materials purchased and used |
$53,200 |
|
Direct labor costs incurred |
$27,300 |
|
Overhead costs assigned |
? |
|
Assembly hours worked |
3,840 hours |
|
Ending work in process inventory |
$1,050 |
|
Ending finished goods inventory |
$960 |
Using T accounts, show the flow of costs through the back flush costing system. What is the total cost of goods sold in March?
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