Chewy Gum Corporation produces bubble gum in large batches and uses a process costing system. Three departments – Mixing, Rolling and Packaging – are involved in the production process. Chewy Gum has the following transactions: a. Direct materials totalling $20,000 - $6000 for the mixing department, $5000 for the rolling department, and $9000 for the packaging department - are requisitioned and placed in production. b. Each production department incurs the following labor costs (wages payable) and manufacturing overheads: Direct labor costs | $2500 $4600 Packaging | $2200 | Manufacturing overhead S10,000 $7,000 $7,500 Mixing Rolling c. Products with a cost of $5500 are transferred from the mixing department to the rolling department. d. Products with a cost of $6400 are transferred from the rolling
Chewy Gum Corporation produces bubble gum in large batches and uses a process costing system. Three departments – Mixing, Rolling and Packaging – are involved in the production process. Chewy Gum has the following transactions: a. Direct materials totalling $20,000 - $6000 for the mixing department, $5000 for the rolling department, and $9000 for the packaging department - are requisitioned and placed in production. b. Each production department incurs the following labor costs (wages payable) and manufacturing overheads: Direct labor costs | $2500 $4600 Packaging | $2200 | Manufacturing overhead S10,000 $7,000 $7,500 Mixing Rolling c. Products with a cost of $5500 are transferred from the mixing department to the rolling department. d. Products with a cost of $6400 are transferred from the rolling
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 17E: Davis Co. uses backflush costing to account for its manufacturing costs. The trigger points are the...
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