Figure 6-21 Ring Company Produces Two Types of Product: Small

question 111

Multiple Choice

Figure 6-21 Ring Company produces two types of product: Small and Large.Two work orders for two batches of the products are shown below, along with some additional cost information:
In the Mixing Department, conversion costs are applied on the basis of direct labor hours.Budgeted conversion costs for the department for the year were $50,000 for labor and $125,000 for overhead.Budgeted direct labor hours were 2,500.It takes three minutes to mix the ingredients needed for each bottle.
Small (Work Order 10) and Large (Work Order 11) flow through the Mixing Department first, then through the Cooking and Bottling departments.
-
Refer to Figure 6-21.What is Ring Company's journal entry to apply conversion costs in the Mixing Department for Work Order 10?

---

Definitions:

Responsibility and Challenges

Duties or tasks that require effort and provide an opportunity to overcome difficulties or obstacles.

Budget Surplus

A financial situation where revenue exceeds expenditures within a specific period, leaving excess funds available for savings or other uses.

Government Receipts

The total money received by the government from various sources, including tax revenues, fees, and fines.

Government Spending

The total expenditure by government agencies on goods and services, including public works, social services, and national defense.