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Catalina Sails makes sails for small sailboats. It recently switched to activity-based costing from the department product costing method. The manager of Department Y, which manufactures the sails, has identified the following cost drivers and rates for overhead:

Activity Centers	Cost Drivers	Rate per Cost Driver Unit
Materials handling	Yards of material handled	$	1.30	per yard
Quality inspections	Number of inspections	$	110	per inspection
Machine setups	Number of machine setups	$	1,000	per setup
Running machines	Number of machine-hours	$	10	per hour

Direct materials costs were $217,000 and direct labor costs were $111,000 during October, when Department Y handled 44,200 yards of materials, made 800 inspections, had 110 setups, and ran the machines for 17,400 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.

Beg. bal Catalina Sails makes sails for small sailboats. It recently switched to activity-based costing from the department product costing method. The manager of Department Y, which manufactures the sails, has identified the following cost drivers and rates for overhead: Beg bal End, bal Overhead Applied: Quality Inspections End, bal Activity Centers Materials handling Quality inspections Machine setups Running machines Cost Drivers Yards of material handled Number of inspections Number of machine setups Number of machine-hours Beg, bal Rate per Cost Driver Unit $ 1.30 per yard $ 110 per inspection $1,000 per setup $ 10 per hour Material Handling Overhe Beg bal End, bal. Direct materials costs were $217,000 and direct labor costs were $111.000 during October, when Department Y handled 44,200 yards of materials, made 800 inspections, had 110 setups, and ran the machines for 17,400 hours. Overhead Applied: Running Machines End, bal Overhead Applied: Machine Setups Beg bal 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. Beg. bal End, bal. Materials Inventory End, bal Finished Goods Inventory Beg bal Wages Payable Beg bal. Work in Process (WIP) Inventory Department Y Beg bal CamScanner Beg bal End, bal End bal. Overhead Applied: Materials Handling Beg bal. Overhead Applied: Quality Inspections Beg bal End, bal End bal. End, bal End bal. Overhead Applied: Machine Setups Beg bal Overhead Applied: Running Machines Beg bal End bal End bal Work in Process (WIP) Inventory Department Y