University Of Tennessee Operations And Supply Chain Management Assignment Help - Problem 20-1A Production

Question - Problem 20-1A Production cost flow and measurement; journal entries L.O. P1, P2, P3, P4
[The following information applies to the questions displayed below.]

Edison Company manufactures wool blankets and accounts for product costs using process costing.
The following information is available regarding its May inventories.

Beginning
Inventory
Ending
Inventory
Raw materials inventory $ 69,000 $ 55,000
Goods in process inventory 401,000 542,500
Finished goods inventory 634,000 536,001


The following additional information describes the company's production activities for May.
Raw materials purchases (on credit) $ 280,000
Factory payroll cost (paid in cash) 1,894,000
Other overhead cost (Other Accounts credit ...Read More ed) 98,000
Materials used
Direct $ 217,000
Indirect 72,000
Labor used
Direct $ 1,104,000
Indirect 790,000
Overhead rate as a percent of direct labor 115 %
Sales (on credit) $ 4,000,000

The predetermined overhead rate was computed at the beginning of the year as 115% of direct labor
cost.

rev: 11_02_2011

references


1. value:
2.00 points
Problem 20-1A Part 1

Required:
1(a) Compute the cost of products transferred from production to finished goods. (Omit the "$" sign
in your response.)
Cost of products transferred $
1(b) Compute the cost of goods sold. (Omit the "$" sign in your response.)
Cost of goods sold $ ...Read Less

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