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    Production cost

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    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.

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    https://brainmass.com/business/accounting/production-cost-172044

    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

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