Staley Toy Co. makes toy flutes. Two manufacturing overhead application bases are used; some overhead is applied

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Staley Toy Co. makes toy flutes. Two manufacturing overhead application bases are used; some overhead is applied on the basis of machine hours at a rate of $7.20 per machine hour, and the balance of the overhead is applied at the rate of 250% of direct labor cost.


Required:

a. Calculate the cost per unit of October production of 1,420 toy flutes that required

1. Raw materials costing $960.

2. 36 direct labor hours costing $612.

3. 60 machine hours.

b. At the end of October, 1,310 of these toy flutes had been sold. Calculate the ending inventory value of the toy flutes still in inventory at October 31.

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula                Ending Inventory Formula =...
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Related Book For  book-img-for-question

Accounting What the Numbers Mean

ISBN: 978-1260565492

12th edition

Authors: David Marshall, Wayne McManus, Daniel Viele

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