Check my work View previous attempt 9 Exercise 10B-3 Standard Cost Flows [LO10-5

Question

Check my work View previous attempt 9 Exercise 10B-3 Standard Cost Flows [LO10-5 Bowen Company manufactures one product, it does not maintain any beginning or ending inventories, and its uses a standard cost system. Its predetermined overhead rate includes $1,000,000 of fixed overhead in the numerator and 50,000 direct labor-hours in the denominator. The company purchased (with cash) and used 46,000 yards of raw materials at a cost of $11.20 per yard. Its direct laborers worked 20,700 hours and were paid a total of $291,400. The company started and completed 9,500 units of finished goods during the period. Bowen's standard cost card for its only product is as follows: 11.12 points Print Standard Quantity or Standard Price or Rate Standard Cost Inputs Direct materials Direct labor Fixed manufacturing overhead Hours 4.4 yards 17.00 per yard 3.8 hours 14.00 per hour 3.8 hours $20.00 per hour 74.80 53.20 76.00 $204.00 Total standard cost per unit

Explanation / Answer

Reason 1a. The raw materials will Increase by $515,200 As we have paid cash and received raw material raw material will increase 1b. The cash will Decrease by $515,200 As we have paid cash it will decrease 2a. The raw materials will Decrease by $515,200 As we have transferred raw material to work in process it will decrease 2b. The work in process will Increase by $515,200 As we have transferred raw material to work in process, the work in process will increase 3a. The work in process will Increase by $291,400 As we have transferred direct labour to work in process, the work in process will increase 3b. The cash will Decrease by $291,400 As we have paid cash it will decrease 4 The work in process will Increase by $414,000 ($1,000,000/50,000*20700) 5 The finished goods will Increase by $1,220,600 (515200+291400+414000)

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

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