43. (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 automobile 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 60 percent of the department’s direct labor cost.

The following information pertains to departmental operations for June 2001:

a. What was the cost of goods transferred from the Striping 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 June 2001.

Transcribed Image Text:

90,000 Work in Process-Striping Beginning DM $20,000 Work in Process-Adhesion Beginning $70,000 Transferred-in ? DL 80,000 DM 60,000 $480,000 Overhead ? DL ? Overhead ? Ending $17,000 Ending $20,000 Work in Process-Packaging Beginning $150,000 Transferred-in DM DL Overhead Ending Finished Goods Beginning $185,000 CGM 830,000 ? ? ? 90,000 Ending ? $ 90,000 $720,000