(Cost flows: multiple departments) Sharp Corporation produces accent stripes for automobiles in 50-inch rolls. Each roll passes through three departments (Striping, Adhesion, and Packaging) before it is ready for shipment to automo¬ bile dealers and detailing shops. Product costs are tracked by department and assigned using a process costing system. Overhead is applied to production in each department at a rate of 80 percent of the department’s direct labor cost.

The following T-account information pertains to departmental operations for June 2006:

b. How much direct labor cost was incurred in the Adhesion Department? How much overhead was assigned to production in the Adhesion De¬ partment for the month?

c. How much direct material cost was charged to products in the Packag¬ ing Department?

d. Prepare the journal entries for all interdepartmental transfers of products and the cost of the units sold during June 2006.LO1.

Transcribed Image Text:

Beginning Work in Process-Striping 20,000 Work in Process-Adhesion Beginning 70,000 DM 90,000 Transferred in DL 80,000 ? ? DM 22,600 ? 480,000 Overhead ? DL ? Overhead ? Ending 17,000 Ending 20,600 Work in Process-Packaging Finished Goods Beginning 150,000 Beginning 185,000 Transferred in ? TI 880,000 ? 720,000 DM ? CGM ? DL ? Ending ? Overhead 90,000 Ending 40,000 a. What was the cost of goods transferred from the Striping Depart- ment to the Adhesion Department for the month?