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Need a refresher on how to do and need it done by tommrow afternoon please. 11. A company makes guitars in two processes. All direct
Need a refresher on how to do and need it done by tommrow afternoon please.
11. A company makes guitars in two processes. All direct materials enter production at the beginning of the Cutting process. Guitars are then transferred to the next process, which is Finishing. Information on May inventories follows. The following additional information describes the company's production activities for May. 1. Calculate (a) production costs transferred from Cutting to Finishing, (b) production costs transferred from Finishing to finished goods, and (c) cost of goods sold. Hint: Compute the total production costs in each department and then subtract the ending inventory to get the amount transferred out of each department using the T accounts, like I did in class. 2. Prepare May 31 journal entries to record the following May activities: a. Raw materials purchases b. Direct materials used c. Direct labor used d. Indirect materials used e. Indirect labor used f. Overhead applied (to each WIP account) g. Other overhead costs paid in cash h. Goods transferred from Cutting to Finishing i. Goods transferred from Finishing to finished goods j. Sales (on credit) k. Cost of goods soldStep by Step Solution
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