Just in time & Activity based costing

Lean Company had no beginning inventories because all units in production last year were sold by the end of the year. At the start of this year, the firm received an order for 2,300 items. The company purchased and used $24,100 of materials in production for this order. Direct labor costs of $35,500 and overhead costs of $81,300 were incurred. Goods representing 10% of these costs were still in finished goods Inventory at the end of the period. 1. Use T-accounts and accounting entries to show the flow of costs under a traditional cost system. 2. Use T-accounts and accounting entries to show the flow of costs using a JIT system with backflush costing Activity Based Costing Timepiece Corporation manufactures travel clock and watches. Overhead costs are currently allocated using direct labor-hours, but the controller has recommended using an ABC system based on the following data: Activity Activity level Travel Clocks Watches Cost driver cost, $ Setups Production setup Material handling Packaging and shipping parts 170,000 60,000 120,000 12 units shipped 40,000 60,000 Total overhead 350,000 A Compute the amount of total overhead allocated to each of the products under ABC. B. Compute the amount of total overhead allocated to each product using labor-hours as the allocation base. Assume labor hours required to assemble each unit are 0.5 per travel clock and 1.0 per watch, and that 40 000 travel clocks and 60 000 watches were produced