Q1: Company has $1,400 indirect expenses. Following are thethree departments through which a product manufactures.Company's costing record provided the following informationfor the month of June, 2022. Company produced 430 unitsthroughout. In addition, $135 & $150 worth of products sold outin the department B and department C respectively.Dept. A (S) Dept. B (S) Dept. C (S)1,2002,300 1,8252,440835Materials 2,800 1,650Labor 2,200650MOHInstructions:i. Pass necessary entries in company's journal.ii. Prepare T-Accounts of three departments.iii. Compute per unit cost of the product.

1.Record Production Cost:ParticularsDebitCreditWork-in-Process (WIP) $1,400…

Answered: Instructions: i. Pass necessary entries…

Instructions: i. Pass necessary entries in company's journal. ii. Prepare T-Accounts of three departments. iii. Compute per unit cost of the product.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter2: Basic Managerial Accounting Concepts

Section: Chapter Questions

Problem 39E: Cost Classification Loring Company incurred the following costs last year: Required: 1. Classify...

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Question

Q1: Company has $1,400 indirect expenses. Following are the
three departments through which a product manufactures.
Company's costing record provided the following information
for the month of June, 2022. Company produced 430 units
throughout. In addition, $135 & $150 worth of products sold out
in the department B and department C respectively.
Dept. A (S) Dept. B (S) Dept. C (S)
1,200
2,300 1,825
2,440
835
Materials 2,800 1,650
Labor 2,200
650
MOH
Instructions:
i. Pass necessary entries in company's journal.
ii. Prepare T-Accounts of three departments.
iii. Compute per unit cost of the product.

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Step 1: Pass Necessary Entries in Company's Journal:

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Step 2: ii. Prepare T-Account of Three Departments:

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Step 3: T-Accounts of Three Departments:

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Step 4: Prepare T-Account of Three Departments:

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