Managerial accounting -Urgent

Eagle Co. manufactures bentwood chairs and tables. Wood for both products is steam-bent in the same process, but different types of wood are used for each product. Thus, materials cost is identified separately to each product. One production cycle uses 20 board feet. Labor cost is identified to the process as a whole, as is overhead cost. Data for the month of July follow:

Direct material cost per board foot
$ 3.60
$ 4.20
Number of parts formed per production cycle (20 board feet)
Actual operating hours in July
Parts produced during July

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Budgeted annual conversion cost:
Other overhead

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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