Share
Explore BrainMass

Production cost

PROBLEM 1
The November production of XXXXXX consisted of batch P25 (2,000 professional basketballs) and batch $33 (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 follow:
Direct material:
Batch P25, $42,000, including $2,500 for packaging material; batch $33, $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:
a. Draw a diagram depicting the division's batch manufacturing process.
b. Compute the November product cost for each type of basketball.
c. Prepare journal entries to record the cost flows during November.

Solution Summary

Excel file contains diagram depicting the division's batch manufacturing process,calculation of product cost for each type of basketball.and journal entries to record the cost flows during November.

$2.19