E7-25a.1. Using a traditional costing system (as discussed in Chapter 5), all of the production costs would be changed to the Work-in-Process account; therefore, the total cost charged during the most recent month would be the cost of components of $905,000 plus the cost of conversion of $192,000, for a total of $1,097,000.$2. Using a traditional costing system Cost of Goods Sold would be charged with the total cost transferred to customers. Since there was no beginning or ending inventory, all of the cost of $1,097,000 charged to Work-in-Process during the month would have been transferred to Cost of Goods Sold.
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