Direct material cost per board foot
Number of parts formed per production cycle (20 board feet)
Actual operating hours in July
Parts produced during July
Budgeted annual conversion cost:
Budgeted annual operating hours for steam-bending
(a) Compute July’s predetermined rate for the steam-bending process.
(b) Compute July’s direct material costs for chairs and tables.
(c) Compute conversion costs to be applied to chairs and tables in July.
(d) Journalize the following entries:
(1) Assignment of direct materials to chairs and tables.
(2) Application of conversion costs to chairs and tables.
(3) The transfer of completed chairs and tables to the Finishing Department. All of July’s production was completed in July.
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