PA9-4 Preparing Journal Entries to Record Fixed Manufacturing Overhead Costs, Va

Question

PA9-4 Preparing Journal Entries to Record Fixed Manufacturing Overhead Costs, Variances [LO 9-S2] Barley Hopp, Inc, manufactures custom-ordered commemorative beer steins, Its standard cost infonmation follows Standard Standard Price Standard (Rata) Quantity Unit Cost Direct materials (clay) Direct labor 2 bs. 210 per b 1.8 hr 9.00 per hr. 18 hrs1.20 per hr 5 2.52 18.20 2.16 2.55 Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead (3221,850 87,000 units) Barley Hopp had the following actual results last year Number of units produced and sold Number of pounds of clay used Cost of clay Number of labor hours worked Direct labor cost Variable overhead oost Fixed overhead cost 119.100 110.000 S 209,000 184.100 5 590.100 S 186,800 325.000 Required Prepare the journal entry to record Barley Hopp's fixed manufacturing overhead costs and related variances for last year. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Racord the antry for fixad manufacturing ovarhead costs and variancas. Note: Enter debits before credits. ansaction Debit Credit

Explanation / Answer

Solution:

Journal Entries - Barley Hoop Inc. Transaction Particulars Debit Credit 1a Fixed manufacturing overhead Dr $221,850.00 Fixed overhead spending variance Dr $103,150.00               To Cash $325,000.00 (To record fixed manufactuirng overhead incurrec) 1b Work in process inventory Dr (119100 * $2.55) $303,705.00               To Fixed manufacturing overhead $221,850.00               To Fixed manufacturing overhead volume variance $81,855.00 (To record direct material used)

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