the packo company, a small manufacturer makes a variety of toolboxes. The company manufacturing operation and its cost. calculate the total costs per unit of each style of box 279 Chapter 8The Lim Company has a plant that manufacturers transistor radios. Theproduction time is only a few minutes per unit. The company uses a just-in-time production system and a backflush costing system with two triggerpoints for journal entries:Exercise 2 (Backflush journal entries and JIT production)• Purchase of direct (raw) materialsCompletion of good finished units of productThere are no beginning inventories. The following data pertain to Aprilmanufacturing:Direct (raw) materials purchasedDirect (raw) materials usedConversion costs incurredAllocation of conversion costsCosts transferred to finished goodsCost of goods soldP8,800,0008,500,0004,220,0004,000,00012,500,00011,900,000Required:1. Prepare summary journa! entries for April (without disposing of under-or overallocated conversion costs). Assume no direct materials variances.2.Post the entries in requirement 1 to T-accounts for applicable InventoryControl, Conversion Costs Control, Conversion Costs Allocated and Costof Goods Sold.3. Under an ideal JIT production system, how would the amounts in yourjournal entries differ from those in requirement 1?Exercise 3 (JIT purchasing, choosing suppliers)The Donnie Corporation and the Thea Corporation manufacture fairly similarremote-controlled toy cars. The Tristan Corporation, a retailer of children'stoys, expects to buy and sell 4,000 of these cars each year. Both Donnie andThea can supply all of Tristan's needs, and Tristan prefers to use only onsupplier for these cars. An electronic hookup will make ordering costsnegligible for either supplier. Tristan wants 80 cars delivered 50 times eachyear. Tristan obtains the following additional information. Operation Costing, Just-in-Time System and Backflush Costing 269II. ExercisesMdSChapfer 8poge. 244-27Exercise 1 (Operation Costing)The Packo Company, a small manufacturer, makes a varicty of tool boxes.The company's manufacturing operations and their costs for November wereCutting Assembly FinishingP16,50022.900P39,400TotalDirect manufacturing laborManufacturing overheadP2.600P4,800 P23.90029,2003.000P5,6003.300P8,100 PS3,100Three styles of boxes were produced in November. The quantities and directmaterials costs wereStyleStandardQuantity1.200Direct materialsP18,0006,6005,400P30.060Home600Industrial200The company uses actual costing. It takes direct materials to each style ofbox. It combines direct manufacturing labor and manufacturing overhead andallocates the conversion costs on the basis of all product units passingthrough an operation. All product units are assumed to receive an identicalamount of time and effort in each operation. The industrial style, however.does not go through the finishing operation.Required:1. Tabulate the conversion costs of each operation, the total units produced,and the conversion costs per unit for November.2. Calculate the total costs and the cost per unit of each style of boxproduced in November. Be sure to account for all the total costs.3. Prepare summary journal entries for each operation. For simplicity,assume that all direct materials are introduced at the beginning of thecutting operation. Also, assume that all units were transferred to finishedgoods when completed and that there was no beginning or ending workin process. Prepare one summary entry for all conversion costs incurred,but prepare a separate entry for allocating conversion costs in eachoperation.

Name: the packo company, a small manufacturer makes a variety of toolboxes.
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Description: the packo company, a small manufacturer makes a variety of toolboxes. The company manufacturing operation and its cost. calculate the total costs per unit of each style of box 279 Chapter 8The Lim Company has a plant that manufacturers transistor rad