LaFontaine Accessories makes a variety of computer bags, carrier bags, and so on. LaFontaine uses activity-based...

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LaFontaine Accessories makes a variety of computer bags, carrier bags, and so on. LaFontaine uses activity-based costing for its products. The production manager has identified the following cost drivers and rates for overhead. The manufacturing facility at LaFontaine never has any work-in-process at the end of the month. Activity Centers General support Materials handling Machine setups Quality inspections Cost Drivers Number of machine-hours Rate per Cost Driver Unit $8 per machine-hour 8 Direct materials cost Number of machine setups Number of inspections $ 4,600 of materials cost per setup $ 86 per inspection Direct materials costs were $850,000 and direct labor costs were $835,000 during January, when the manufacturing facility made 750 inspections, had 36 setups, and ran the machines for 18,000 hours. Required: Use T-accounts to show the flow of materials, labor, and overhead costs from the four overhead activity centers through Work-in- Process Inventory and out to Finished Goods Inventory. Use the accounts Materials Inventory, Wages Payable, Work-in-Process Inventory, Finished Goods Inventory, and four overhead applied accounts. Debit Beginning Balance Ending Balance Materials Inventory Credit Wages Payable Debit Credit Beginning Balance Ending Balance Overhead Applied: General Support Overhead Applied: Materials Handling Debit Credit Debit Credit Beginning Balance Beginning Balance Ending Balance Ending Balance Overhead Applied: Machine Setups Overhead Applied: Quality Inspections Debit Credit Debit Credit Beginning Balance Beginning Balance Ending Balance Ending Balance Work-in-Process (WIP) Inventory Department Y Finished Goods Inventory Debit Credit Debit Credit Beginning Balance Beginning Balance Ending Balance Ending Balance LaFontaine Accessories makes a variety of computer bags, carrier bags, and so on. LaFontaine uses activity-based costing for its products. The production manager has identified the following cost drivers and rates for overhead. The manufacturing facility at LaFontaine never has any work-in-process at the end of the month. Activity Centers General support Materials handling Machine setups Quality inspections Cost Drivers Number of machine-hours Rate per Cost Driver Unit $8 per machine-hour 8 Direct materials cost Number of machine setups Number of inspections $ 4,600 of materials cost per setup $ 86 per inspection Direct materials costs were $850,000 and direct labor costs were $835,000 during January, when the manufacturing facility made 750 inspections, had 36 setups, and ran the machines for 18,000 hours. Required: Use T-accounts to show the flow of materials, labor, and overhead costs from the four overhead activity centers through Work-in- Process Inventory and out to Finished Goods Inventory. Use the accounts Materials Inventory, Wages Payable, Work-in-Process Inventory, Finished Goods Inventory, and four overhead applied accounts. Debit Beginning Balance Ending Balance Materials Inventory Credit Wages Payable Debit Credit Beginning Balance Ending Balance Overhead Applied: General Support Overhead Applied: Materials Handling Debit Credit Debit Credit Beginning Balance Beginning Balance Ending Balance Ending Balance Overhead Applied: Machine Setups Overhead Applied: Quality Inspections Debit Credit Debit Credit Beginning Balance Beginning Balance Ending Balance Ending Balance Work-in-Process (WIP) Inventory Department Y Finished Goods Inventory Debit Credit Debit Credit Beginning Balance Beginning Balance Ending Balance Ending Balance

Answer rating: 100% (QA)

Materials Inventory Debit Credit Beginning Balance 0 850000 Direct materials cost Ending Balance 850... View the full answer