Journal Entries under Standard Costing (Appendix), Posting Journal Entries for V
ID: 2571446 • Letter: J
Question
Journal Entries under Standard Costing (Appendix), Posting Journal Entries for Variances (Appendix) (LO 10-6, 10-9)
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Saskatewan Can Company manufactures recyclable soft-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.
Actual material purchases amounted to 185,600 kilograms at $0.60 per kilogram. Actual costs incurred in the production of 32,000 units were as follows:
Prepare the following journal entries. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations.)
1.)Record the purchase of direct material on account and the direct-material purchase price variance.
2.)Record the addition of direct-material cost to work-in-process inventory and the direct-material quantity variance.
3.)Record the addition of direct-labor cost to work-in-process inventory and the direct-labor variances.
4.)Record the addition of direct-labor cost to work-in-process inventory and the direct-labor variances.
Direct Labor: Direct Material: Quantity, 0.21 hour Quantity, 4 kilograms Rate, $10.50 per hour Price, $0.52 per kilogramExplanation / Answer
JOURNAL RNTRY Account Title Debit Credit Direct materials Inventory $ 96,512 (185600*0.52) Direct materials purchase price variance $ 14,848 (111360-96512) Account Payable $ 111,360 (185600*0.60) Work in process $ 66,560 (32000*4*0.52) Direct Materialquantity variance $ 7,488 (74048-66560) Direct material inventory $ 74,048 (142400*0.52) Wotk in process $ 70,560 (32000*0.21*10.5) Direct labor variance $6,528 (77088-70560) Wages payable $77,088 Question 3 & 4 are identical
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