(Cost flows, multiple departments) Smyrna Corporation produces accent stripes for automobiles in 50-inch rolls. Each roll passes through three departments (strip¬ ping, adhesion, and packaging) before it is ready for shipment to automobile dealers and detailing shops. Product costs are tracked by department and as¬ signed using a process costing system. Overhead is applied to production in each department at a rate of 60 percent of the department’s direct labor cost. The information below pertains to departmental operations for November 1997.

a. What was the cost of goods transferred from the Stripping Department to the Adhesion Department for the month? .

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

c. How much direct material cost was charged to products passing through the Packaging Department?

d. Prepare the journal entries for all interdepartmental transfers of products and the cost of the units sold during November 1997.LO1

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WORK IN PROCESS-STRIPPING Beginning $20,000 DM 90,000 DL 80,000 Overhead ? Ending $17,000 WORK IN PROCESS-ADHESION Beginning Transferred-in DM DL Overhead $70,000 60,000 $480,000 P Ending $20,000