Question: Elijah Inc. produces accent stripes for automobiles
Elijah Inc. 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 customers. 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 80 percent of the department’s direct labor cost.
The following T-account information pertains to departmental operations for June
2010:
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 in the Packaging Department?
d. Prepare the journal entries for all interdepartmental transfers of products and the cost of the units sold during June 2010.
Transcribed Image Text:
Work in Process-Striping Work in Process-Adhesion Beginning 20,000 Beginning 70,000 DM 90,000 Transferred in ? DL 80,000 ? DM 22,600 ? 480,000 Overhead DL ? Overhead Ending 17,000 Ending 20,600 Work in Process-Packaging Finished Goods Beginning 150,000 Beginning 185,000 Transferred in ? TI 880,000 ? 720,000 DM ? CGM DL Overhead 90,000 Ending Ending 40,000
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