Reilly Corporation produces metal fasteners using six work cells, one for each of its product lines. It implemented just-in-time operations and costing methods two years ago. Overhead is assigned using a rate of $14 per machine hour for the Machine Snap Work Cell. There were no beginning inventories on April 1. All direct materials and purchased parts are used as they are received. Operating details for April for the Machine Snap Work Cell are as follows:
Cost of direct materials purchased........................................ $104,500
On account and used
Cost of parts purchased on account......................................... $78,900
And used
Direct labor costs incurred.................................................... $39,000
Overhead costs assigned?
Machine hours used............................................................ 12,220
Costs of goods completed during April................................... $392,540
Ending work in process inventory............................................... $940
Ending finished goods inventory............................................. $1,020
Required
1. Using T accounts, show the flow of costs through a backflush costing system.
2. Using T accounts, show the flow of costs through a traditional costing system.
3. What is the total cost of goods sold for April using a traditional costing system?