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Smith and Hodges Produce Notions for the Clothing Industry A Using T Accounts and Traditional Costing, Show the Flow

question 22

Essay

Smith and Hodges produce notions for the clothing industry. It uses four work cells for its four product lines. Just-in-time operations and costing methods have recently been adopted. A overhead rate of $9.50 per machine hour is applied to work cell #2. There were no beginning inventories on February 1. Operating costs for February for work cell #2 are as follows:
$\begin{array}{|lr|}\hline \text { Direct materials purchased on account and used } & 26,815 \\\text { Parts purchased on account and used } & 19,320 \\\text { Direct labor costs incurred } & 17,000 \\\text { Overhead costs applied } & 59,400 \\\text { Cost of goods completed during February } & 119,635 \\\text { Ending work in process inventory } & 2,900 \\\text { Ending finished goods inventory } & 1,850 \\\hline\end{array}$
a. Using T accounts and traditional costing, show the flow of costs.
$Smith and Hodges produce notions for the clothing industry. It uses four work cells for its four product lines. Just-in-time operations and costing methods have recently been adopted. A overhead rate of $9.50 per machine hour is applied to work cell #2. There were no beginning inventories on February 1. Operating costs for February for work cell #2 are as follows: \begin{array}{|lr|} \hline \text { Direct materials purchased on account and used } & 26,815 \\ \text { Parts purchased on account and used } & 19,320 \\ \text { Direct labor costs incurred } & 17,000 \\ \text { Overhead costs applied } & 59,400 \\ \text { Cost of goods completed during February } & 119,635 \\ \text { Ending work in process inventory } & 2,900 \\ \text { Ending finished goods inventory } & 1,850 \\ \hline \end{array} a. Using T accounts and traditional costing, show the flow of costs. b. Using T accounts and a backflush costing system, show the flow of costs. c. What is the total cost of goods sold for the month of February?$
$Smith and Hodges produce notions for the clothing industry. It uses four work cells for its four product lines. Just-in-time operations and costing methods have recently been adopted. A overhead rate of $9.50 per machine hour is applied to work cell #2. There were no beginning inventories on February 1. Operating costs for February for work cell #2 are as follows: \begin{array}{|lr|} \hline \text { Direct materials purchased on account and used } & 26,815 \\ \text { Parts purchased on account and used } & 19,320 \\ \text { Direct labor costs incurred } & 17,000 \\ \text { Overhead costs applied } & 59,400 \\ \text { Cost of goods completed during February } & 119,635 \\ \text { Ending work in process inventory } & 2,900 \\ \text { Ending finished goods inventory } & 1,850 \\ \hline \end{array} a. Using T accounts and traditional costing, show the flow of costs. b. Using T accounts and a backflush costing system, show the flow of costs. c. What is the total cost of goods sold for the month of February?$
$Smith and Hodges produce notions for the clothing industry. It uses four work cells for its four product lines. Just-in-time operations and costing methods have recently been adopted. A overhead rate of $9.50 per machine hour is applied to work cell #2. There were no beginning inventories on February 1. Operating costs for February for work cell #2 are as follows: \begin{array}{|lr|} \hline \text { Direct materials purchased on account and used } & 26,815 \\ \text { Parts purchased on account and used } & 19,320 \\ \text { Direct labor costs incurred } & 17,000 \\ \text { Overhead costs applied } & 59,400 \\ \text { Cost of goods completed during February } & 119,635 \\ \text { Ending work in process inventory } & 2,900 \\ \text { Ending finished goods inventory } & 1,850 \\ \hline \end{array} a. Using T accounts and traditional costing, show the flow of costs. b. Using T accounts and a backflush costing system, show the flow of costs. c. What is the total cost of goods sold for the month of February?$
$Smith and Hodges produce notions for the clothing industry. It uses four work cells for its four product lines. Just-in-time operations and costing methods have recently been adopted. A overhead rate of $9.50 per machine hour is applied to work cell #2. There were no beginning inventories on February 1. Operating costs for February for work cell #2 are as follows: \begin{array}{|lr|} \hline \text { Direct materials purchased on account and used } & 26,815 \\ \text { Parts purchased on account and used } & 19,320 \\ \text { Direct labor costs incurred } & 17,000 \\ \text { Overhead costs applied } & 59,400 \\ \text { Cost of goods completed during February } & 119,635 \\ \text { Ending work in process inventory } & 2,900 \\ \text { Ending finished goods inventory } & 1,850 \\ \hline \end{array} a. Using T accounts and traditional costing, show the flow of costs. b. Using T accounts and a backflush costing system, show the flow of costs. c. What is the total cost of goods sold for the month of February?$
b. Using T accounts and a backflush costing system, show the flow of costs.
$Smith and Hodges produce notions for the clothing industry. It uses four work cells for its four product lines. Just-in-time operations and costing methods have recently been adopted. A overhead rate of $9.50 per machine hour is applied to work cell #2. There were no beginning inventories on February 1. Operating costs for February for work cell #2 are as follows: \begin{array}{|lr|} \hline \text { Direct materials purchased on account and used } & 26,815 \\ \text { Parts purchased on account and used } & 19,320 \\ \text { Direct labor costs incurred } & 17,000 \\ \text { Overhead costs applied } & 59,400 \\ \text { Cost of goods completed during February } & 119,635 \\ \text { Ending work in process inventory } & 2,900 \\ \text { Ending finished goods inventory } & 1,850 \\ \hline \end{array} a. Using T accounts and traditional costing, show the flow of costs. b. Using T accounts and a backflush costing system, show the flow of costs. c. What is the total cost of goods sold for the month of February?$
$Smith and Hodges produce notions for the clothing industry. It uses four work cells for its four product lines. Just-in-time operations and costing methods have recently been adopted. A overhead rate of $9.50 per machine hour is applied to work cell #2. There were no beginning inventories on February 1. Operating costs for February for work cell #2 are as follows: \begin{array}{|lr|} \hline \text { Direct materials purchased on account and used } & 26,815 \\ \text { Parts purchased on account and used } & 19,320 \\ \text { Direct labor costs incurred } & 17,000 \\ \text { Overhead costs applied } & 59,400 \\ \text { Cost of goods completed during February } & 119,635 \\ \text { Ending work in process inventory } & 2,900 \\ \text { Ending finished goods inventory } & 1,850 \\ \hline \end{array} a. Using T accounts and traditional costing, show the flow of costs. b. Using T accounts and a backflush costing system, show the flow of costs. c. What is the total cost of goods sold for the month of February?$
$Smith and Hodges produce notions for the clothing industry. It uses four work cells for its four product lines. Just-in-time operations and costing methods have recently been adopted. A overhead rate of $9.50 per machine hour is applied to work cell #2. There were no beginning inventories on February 1. Operating costs for February for work cell #2 are as follows: \begin{array}{|lr|} \hline \text { Direct materials purchased on account and used } & 26,815 \\ \text { Parts purchased on account and used } & 19,320 \\ \text { Direct labor costs incurred } & 17,000 \\ \text { Overhead costs applied } & 59,400 \\ \text { Cost of goods completed during February } & 119,635 \\ \text { Ending work in process inventory } & 2,900 \\ \text { Ending finished goods inventory } & 1,850 \\ \hline \end{array} a. Using T accounts and traditional costing, show the flow of costs. b. Using T accounts and a backflush costing system, show the flow of costs. c. What is the total cost of goods sold for the month of February?$
$Smith and Hodges produce notions for the clothing industry. It uses four work cells for its four product lines. Just-in-time operations and costing methods have recently been adopted. A overhead rate of $9.50 per machine hour is applied to work cell #2. There were no beginning inventories on February 1. Operating costs for February for work cell #2 are as follows: \begin{array}{|lr|} \hline \text { Direct materials purchased on account and used } & 26,815 \\ \text { Parts purchased on account and used } & 19,320 \\ \text { Direct labor costs incurred } & 17,000 \\ \text { Overhead costs applied } & 59,400 \\ \text { Cost of goods completed during February } & 119,635 \\ \text { Ending work in process inventory } & 2,900 \\ \text { Ending finished goods inventory } & 1,850 \\ \hline \end{array} a. Using T accounts and traditional costing, show the flow of costs. b. Using T accounts and a backflush costing system, show the flow of costs. c. What is the total cost of goods sold for the month of February?$
c. What is the total cost of goods sold for the month of February?

Definitions:

Continued Losses

Ongoing financial deficits where expenses exceed revenues over a period of time.

Distribution of Income

The way in which a nation’s total income is spread among its population, affecting economic stability and growth.

Consumer Sovereignty

The theory that consumer preferences determine the production of goods and services in an economy.

Willingness to Pay

The maximum amount an individual is ready to spend for a good or service, reflecting its perceived value.