Re-Tire produces bagged mulch made from recycled tires. Production involves shredding tires and packaging the pieces for sale in the bagging department. All direct materials enter in the first process. The following describes production operations for October. Direct materials used $226,000 $145,000 Direct labor used 30% in Shredding; 70% in Bagging. Predetermined overhead rate (based on direct labor) Transferred to Bagging $200,500 $585,000 Transferred to finished goods The company's revenue for the month totaled $430,000 from credit sales, and its cost of goods sold for the month is $252,000. Prepare summary journal entries dated October 31 to record its October production activities for (1) direct materials usage, (2) direct abor incurred (3) overhead applied, (4) goods transfer from Shredding to Bagging, (5) goods transfer from Bagging to finished goods, 5) credit sales, and (7) cost of goods sold. View transaction list Journal entry worksheet < 1 2 3 4 5 6 7 > Record direct materials used in production. < Prev Next > 4 of 5 H 185% ‒‒‒ HI www O
Re-Tire produces bagged mulch made from recycled tires. Production involves shredding tires and packaging the pieces for sale in the bagging department. All direct materials enter in the first process. The following describes production operations for October. Direct materials used $226,000 $145,000 Direct labor used 30% in Shredding; 70% in Bagging. Predetermined overhead rate (based on direct labor) Transferred to Bagging $200,500 $585,000 Transferred to finished goods The company's revenue for the month totaled $430,000 from credit sales, and its cost of goods sold for the month is $252,000. Prepare summary journal entries dated October 31 to record its October production activities for (1) direct materials usage, (2) direct abor incurred (3) overhead applied, (4) goods transfer from Shredding to Bagging, (5) goods transfer from Bagging to finished goods, 5) credit sales, and (7) cost of goods sold. View transaction list Journal entry worksheet < 1 2 3 4 5 6 7 > Record direct materials used in production. < Prev Next > 4 of 5 H 185% ‒‒‒ HI www O
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter3: Process Cost Systems
Section: Chapter Questions
Problem 7BE: In October, the cost of materials transferred into the Rolling Department from the Casting...
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Concept explainers
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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Transcribed Image Text:Re-Tire produces bagged mulch made from recycled tires. Production involves shredding tires and packaging the pieces for sale in the
bagging department. All direct materials enter in the first process. The following describes production operations for October.
Direct materials used
Direct labor used 30% in Shredding; 70% in Bagging.
Predetermined overhead rate (based on direct labor)
$226,000
$145,000
185%
Transferred to Bagging
$200,500
$585,000
Transferred to finished goods
The company's revenue for the month totaled $430,000 from credit sales, and its cost of goods sold for the month is $252,000.
Prepare summary journal entries dated October 31 to record its October production activities for (1) direct materials usage, (2) direct
labor incurred (3) overhead applied, (4) goods transfer from Shredding to Bagging, (5) goods transfer from Bagging to finished goods,
(6) credit sales, and (7) cost of goods sold.
View transaction list
Journal entry worksheet
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1
2
3
4
5
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7
>
Record direct materials used in production.
< Prev
Next >
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