Principles of Auditing & Other Assurance Services (Irwin Accounting)
Principles of Auditing & Other Assurance Services (Irwin Accounting)
20th Edition
ISBN: 9780077729141
Author: Ray Whittington, Kurt Pany
Publisher: McGraw-Hill Education
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Chapter 6, Problem 18RQ
To determine

Describe the audit work to be done in advance of the balance sheet date.

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TimberTech, Inc. manufactures power drills that sell for $85. Each power drill uses $18 in direct materials and $12 in direct labor per unit. TimberTech has two activities: Assembly, which is applied at the rate of $6 per machine hour, and Packaging, which is applied at the rate of $30 per batch. This month, TimberTech made 400 power drills, using 1,200 machine hours in 50 batches. What is the total manufacturing cost for one power drill?
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