Activity-Based Costing: Cost Flows through T-Accounts Delta Parts, Inc., recently switched to activity-based costing from the department

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Activity-Based Costing: Cost Flows through T-Accounts Delta Parts, Inc., recently switched to activity-based costing from the department allocation method. The Fabrication Department manager has estimated the following cost drivers and rates:

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Direct materials costs were $300,000, and direct labor costs were $150,000 during July, when the Fabrication Department handled 3,750 pounds of materials, made 750 inspections, had 40 setups, and ran the machines for 15,000 hours.

Required Use T-accounts to show the flow of materials, labor, and overhead costs from the four overhead activity centers through Work-in-Process Inventory and out to Finished Goods Inventory. Use the accounts Materials Inventory, Wages Payable, Work-in-Process Inventory, Finished Goods Inventory, and four overhead applied accounts.

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Related Book For  book-img-for-question

Fundamentals Of Cost Accounting

ISBN: 9780073018379

1st Edition

Authors: Michael W Maher, William N. Lanen, Madhav V. Rajan

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