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I've been struggling with this problem and how to start for a few hours and have had no luck. Any help would be greatly appreciated.
I've been struggling with this problem and how to start for a few hours and have had no luck. Any help would be greatly appreciated. Thank you in advance.
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 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 Rate per Cost Driver Unit $0.85 per yard $ 80 per inspection $ 900 per setup $ 10 per hour Direct materials costs were $233,000 and direct labor costs were $95,000 during October, when Department Y handled 43,300 yards of materials, made 700 inspections, had 80 setups, and ran the machines for 17,200 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. Materials Inventory Wages Payable Beg. bal. Beg. bal. End. bal. End. bal. Overhead Applied: Materials Handling Overhead Applied: Quality Inspections Beg. bal. Beg. bal. End. bal. End. bal. Overhead Applied: Machine Setups Overhead Applied: Running Machines Beg. bal Beg. bal. End. bal. End. bal. Work In Process (WIP) Inventory Department Y Finished Goods Inventory Beg. bal Beg. bal End. bal. End, balStep by Step Solution
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