The November production of MVP's Minnesota Division consisted of batch P25 (2, 600 professional basketballs) and batch S33 (5,000 scholastic basketballs). Each batch was started and finished during November, and there was no beginning or ending work in process. Costs incurred were as follows: Direct Material: Batch P25, $57, 200, including $4,000 for packaging material; batch S33, $63, 750. Conversion Costs: Preparation Department, predetermined rate of $5.30 per unit; Finishing Department, predetermined rate of $6.00 per unit; Packaging Department, predetermined rate of $0.40 per unit. (Only the professional balls are packaged.) 3. Prepare journal entries to record the cost flows during November.

The November production of MVP's Minnesota Division consisted of batch P25 (2, 600 professional basketballs) and batch S33 (5,000 scholastic basketballs). Each batch was started and finished during November, and there was no beginning or ending work in process. Costs incurred were as follows: Direct Material: Batch P25, $57, 200, including $4,000 for packaging material; batch S33, $63, 750. Conversion Costs: Preparation Department, predetermined rate of $5.30 per unit; Finishing Department, predetermined rate of $6.00 per unit; Packaging Department, predetermined rate of $0.40 per unit. (Only the professional balls are packaged.) 3. Prepare journal entries to record the cost flows during November.

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Description: The November production of MVP's Minnesota Division consisted of batch P25 (2, 600 professionalbasketballs) and batch S33 (5,000 scholastic basketballs). Each batch was started and finished duringNovember, and there was no beginning or ending work i

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 6PB: Box Springs. Inc., makes two sizes of box springs: queen and king. The direct material for the queen...

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The November production of MVP’s Minnesota Division consisted of batch P25 (2,000 professional basketballs) and batch S33 (4,000 scholastic basketballs). Each batch was started and finished during November, and there was no beginning or ending work in process. Costs incurred were as follows:Direct Material:Batch P25, $42,000, including $2,500 for packaging material; batch S33, $45,000.Conversion Costs:Preparation Department, predetermined rate of $7.50 per unit; Finishing Department, predetermined rate of $6.00 per unit; Packaging Department, predetermined rate of $.50 per unit. (Only the professional balls are packaged.)Required:1. Draw a diagram depicting the division’s batch manufacturing process. Refer to Exhibit 4–10 for guidance.2. Compute the November product cost for each type of basketball.3. Prepare journal entries to record the cost flows during November.
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