Canandaigua Container Company manufactures recyclable sofn-drink cans. A unit of

Question

Canandaigua Container Company manufactures recyclable sofn-drink cans. A unit of production is a case of 12 dozen cans. The following standards have been set by the production- engineering staff and the controller. Direct labor: Direct material: Quantity, .25 hour Quantity, 4 kilograms Rate, $12 per hour Price, 5.60 per kilogram Actual material purchases amounted to 240,000 kilograms at $.62 per kilogram. Actual costs incurred in the production of 50,000 units were as follows: Direct labor: Direct material: 130,200 for 210,000 kilograms $158,600 for 13,000 hours Refer to your answer for Exercise 10-31. Set up T-accounts, and post the journal entries to the general ledger Exercise 10-31 Refer to the data in Exercise 10-25, regarding Canandaigua Container Company. Prepare journal entries to 1. Record the purchase of direct material on account 2. Record the direct-material variances and add direct-material cost to Work-in-Process Inventory 3. Record the direct-labor variances and add direct-labor cost to Work-in-Process Inventory 4. Close these varniances into Cost of Goods Sold

Explanation / Answer

Variances: DMPV (62-60)* 210000 420000 U DMQV (50000*4-210000)60 600000 U DLRV (12.20-12)13000 2600 U DLEV (50000*0.25 - 13000)12 6000 U Journal Entries: Debit $ Credit $ 1 Material 14.88m AP 14.88m (Being purchase of material) 2 WIP   (50000*4*60) 12m DMPV 0.42m DMQV 0.6m Material 13.02m (Being recording of transfer to WIP and variances) 3 COGS 1.02m DMPV 0.42m DMQV 0.6m (transfer to COGS) 4 WIP   (50000*0.25*12) 150000 DLRV 2600 DLEV 6000 Wages payable 158600 (Being recording of transfer to WIP and variances) 5 COGS 8600 DLRV 2600 DLEV 6000 (transfer to COGS)

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.