quiattempt.php?a ??C FINAL Exam- x @Chegg Study! Gut_ @ Big Nuts Griffey Jr. sin

Question

quiattempt.php?a ??C FINAL Exam- x @Chegg Study! Gut_ @ Big Nuts Griffey Jr. sinessCourse Menu Tanner Mc QUESTION 5 Not complete Ponts out of 37 00 PFag question Variances and Journal Entries Kent Company manufactures a single product and uses a standard costing system. The nature of its product dictates that it be sold in the period it is produced. Thus, no ending work in process or finished goods inventories remain at the end of the period. However, raw materials can be stored and are purchased in bulk when prices are tavorable. Per-unit, standard product costs are material, $6 (0.5 pound); labor, $15 (1.5 hours); and variable overhead, $3 (based on direct labor hours). Budgeted fixed overhead is $96,000. Kent Company accounts for al inventories and cost of goods sold at standard cost and records each varlance in a separate account. The following data relate to June, 2016 when 7,800 finished units were produced. a. Assume Kent purchased 4,500 pounds of raw materials on account at $11.60 per pound and used 4,200 pounds in June's production, prepare a jourmal entry to record the purchase of raw materials and a separate journal entry to record the use of raw materials in production. Record these entries using standard costs and include the appropriate materials variances General Journal Description Debit Credit Materials price variance To record the purchase of direct materials HYUNDA

Explanation / Answer

Solution:

Journal Entries S. No. Particulars Debit Credit a1 Raw Material inventory Dr (45000*$12) $54,000.00                  To Accounts Payable (4500*$11.60) $52,200.00                  To Direct material price variance (4500*$0.40) $1,800.00 (Being raw material purchased) a2 Work in Process Dr (7800*0.5*$12) $46,800.00 Direct material quantity variance Dr (300*$12) $3,600.00                  To Raw Material inventory (4200*$12) $50,400.00 (To recored consumption of raw material in to production) b Work in Process Dr (7800*1.50*$10) $117,000.00 Direct labor rate variance Dr (12000*$0.50) $6,000.00 Direct labor efficiency variance Dr (300*$10) $3,000.00                  To Wages payable (12000*$10.50) $126,000.00 (Being labor cost incurred) c Work in Process Dr (7800*1.50*$2 + $96,000) $119,400.00 Variable overhead efficiency variance Dr (300*$2) $600.00                  To Variable overhead rate variance (12000*$0.075) $900.00                  To Manufacturing overhead ($23,100 + $96,000) $119,100.00 (Being manufacturing overhead applied to production)

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

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