**Re-Tire Production Process and Financial Summary for October**Re-Tire produces bagged mulch made from recycled tires. The production involves shredding tires and packaging the pieces for sale in the bagging department. All direct materials enter in the first process. The following describes production operations for October:- **Direct Materials Used:** $226,000- **Direct Labor Used:** 30% in Shredding; 70% in Bagging, total of $145,000- **Predetermined Overhead Rate (based on direct labor):** 185%- **Transferred to Bagging:** $200,500- **Transferred to Finished Goods:** $585,000The company's revenue for the month totaled $430,000 from credit sales, and its cost of goods sold for the month is $252,000.**Task: Prepare Summary Journal Entries for October 31**Prepare summary journal entries dated October 31 to record its October production activities for:1. Direct materials usage2. Direct labor incurred3. Overhead applied4. Goods transfer from Shredding to Bagging5. Goods transfer from Bagging to finished goods6. Credit sales7. Cost of goods sold*View Transaction List***Journal Entry Worksheet**Below is the journal entry worksheet divided into steps, where users can input the required financial data:- **Step 1:** Record direct materials used in production.*Navigation:*- **Prev:** 4 of 5- **Next:** Arrow for next stepThe worksheet allows users to view each step and input journal entries accordingly, ensuring all aspects of the production process and financial transactions are correctly accounted for.

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Description: **Re-Tire Production Process and Financial Summary for October**Re-Tire produces bagged mulch made from recycled tires. The production involves shredding tires and packaging the pieces for sale in the bagging department. All direct materials enter i

In the context of the given question, we are required to prepare the journal entries.…

Business

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Re-Tire produces bagged mulch made from recycled tires. Production involves shredding tires and packaging the pieces for sale in the bagging department. All direct materials enter in the first process. The following describes production operations for October. Direct materials used $226,000 $145,000 Direct labor used 30% in Shredding; 70% in Bagging. Predetermined overhead rate (based on direct labor) Transferred to Bagging $200,500 $585,000 Transferred to finished goods The company's revenue for the month totaled $430,000 from credit sales, and its cost of goods sold for the month is $252,000. Prepare summary journal entries dated October 31 to record its October production activities for (1) direct materials usage, (2) direct abor incurred (3) overhead applied, (4) goods transfer from Shredding to Bagging, (5) goods transfer from Bagging to finished goods, 5) credit sales, and (7) cost of goods sold. View transaction list Journal entry worksheet < 1 2 3 4 5 6 7 > Record direct materials used in production. < Prev Next > 4 of 5 H 185% ‒‒‒ HI www O

Re-Tire produces bagged mulch made from recycled tires. Production involves shredding tires and packaging the pieces for sale in the bagging department. All direct materials enter in the first process. The following describes production operations for October. Direct materials used $226,000 $145,000 Direct labor used 30% in Shredding; 70% in Bagging. Predetermined overhead rate (based on direct labor) Transferred to Bagging $200,500 $585,000 Transferred to finished goods The company's revenue for the month totaled $430,000 from credit sales, and its cost of goods sold for the month is $252,000. Prepare summary journal entries dated October 31 to record its October production activities for (1) direct materials usage, (2) direct abor incurred (3) overhead applied, (4) goods transfer from Shredding to Bagging, (5) goods transfer from Bagging to finished goods, 5) credit sales, and (7) cost of goods sold. View transaction list Journal entry worksheet < 1 2 3 4 5 6 7 > Record direct materials used in production. < Prev Next > 4 of 5 H 185% ‒‒‒ HI www O

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Concept explainers

Process Costing

Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure. 

Job Costing

Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.

ABC Costing

Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.

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**Re-Tire Production Process and Financial Summary for October**

Re-Tire produces bagged mulch made from recycled tires. The production involves shredding tires and packaging the pieces for sale in the bagging department. All direct materials enter in the first process. The following describes production operations for October:

- **Direct Materials Used:** $226,000
- **Direct Labor Used:** 30% in Shredding; 70% in Bagging, total of $145,000
- **Predetermined Overhead Rate (based on direct labor):** 185%
- **Transferred to Bagging:** $200,500
- **Transferred to Finished Goods:** $585,000

The company's revenue for the month totaled $430,000 from credit sales, and its cost of goods sold for the month is $252,000.

**Task: Prepare Summary Journal Entries for October 31**

Prepare summary journal entries dated October 31 to record its October production activities for:

1. Direct materials usage
2. Direct labor incurred
3. Overhead applied
4. Goods transfer from Shredding to Bagging
5. Goods transfer from Bagging to finished goods
6. Credit sales
7. Cost of goods sold

*View Transaction List*

**Journal Entry Worksheet**

Below is the journal entry worksheet divided into steps, where users can input the required financial data:

- **Step 1:** Record direct materials used in production.

*Navigation:*
- **Prev:** 4 of 5
- **Next:** Arrow for next step

The worksheet allows users to view each step and input journal entries accordingly, ensuring all aspects of the production process and financial transactions are correctly accounted for.

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