Elly Corporation produces metal fasteners using six work cells, one for each of its product lines. It implemented JIT operations and costing methods two years ago. Overhead is assigned using a rate of $14 per machine hour for the Snap Work Cell. There were no beginning inventories on April 1. All direct materials and purchased parts are used as they are received. Operating details for April for the Snap Work Cell follow.
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Cost of direct materials purchased on account and used
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$104,500
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Cost of parts purchased on account and used
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$78,900
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Direct labor costs incurred
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$39,000
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Overhead costs assigned
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?
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Machine hours used
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12,220
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Costs of goods completed during April
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$392,540
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Ending work in process inventory
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$940
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Ending finished goods inventory
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$1,020
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Required:
1. Using T accounts, show the flow of costs through a backflush costing system.
2. Using T accounts, show the flow of costs through a traditional costing system.
3. What is the total cost of goods sold for April using a traditional costing system?