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Amada Company's standard cost system reports this information from its December operations. $ 104,000 Standard direct materials cost Direct materials quantity variance Direct materials price variance Actual direct labor cost Direct labor efficiency variance Direct labor rate variance Actual overhead cost Volume variance Controllable variance View transaction list Journal entry worksheet < Required: 1. Prepare December 31 journal entries to record the company's costs and variances for the month for (a) direct materials, (b) c labor, and (c) overhead. Ignore the journal entry to close the variances. Record direct labor costs and variances. Note: Enter debits before credits. Date December 31 3,408 U GOD F General Journal 87,800 6,908 F 1, 108 U 374, 508 12, 008 U 8, 908 U Debit Credit

Amada Company's standard cost system reports this information from its December operations. $ 104,000 Standard direct materials cost Direct materials quantity variance Direct materials price variance Actual direct labor cost Direct labor efficiency variance Direct labor rate variance Actual overhead cost Volume variance Controllable variance View transaction list Journal entry worksheet < Required: 1. Prepare December 31 journal entries to record the company's costs and variances for the month for (a) direct materials, (b) c labor, and (c) overhead. Ignore the journal entry to close the variances. Record direct labor costs and variances. Note: Enter debits before credits. Date December 31 3,408 U GOD F General Journal 87,800 6,908 F 1, 108 U 374, 508 12, 008 U 8, 908 U Debit Credit

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Amada Company's standard cost system reports the following information from its December operations: - **Standard direct materials cost:** $104,000 - **Direct materials quantity variance:** $4,400 U (Unfavorable) - **Direct materials price variance:** $600 F (Favorable) - **Actual direct labor cost:** $87,000 - **Direct labor efficiency variance:** $9,500 F (Favorable) - **Actual overhead cost:** $374,500 - **Total overhead variance:** $12,000 U (Unfavorable) - **Volume variance:** $4,000 U (Unfavorable) - **Controllable variance:** $8,000 U (Unfavorable) ### Required: Prepare December 31 journal entries to record the company's costs and variances for the month for: - (a) Direct materials - (b) Direct labor - (c) Overhead Ignore the journal entry to close the variances. ### Journal Entry Worksheet The worksheet is divided into steps, with the currently selected step being step 2. #### Instructions for Step 2: Record direct labor costs and variances. #### Entry Details: - **Date:** December 31 - **General Journal Columns:** - **Debit:** [Blank fields for input] - **Credit:** [Blank fields for input] _Note: Enter debits before credits._ This setup will be used to enter financial data accurately, reflecting the transactions related to direct labor costs and variances for the specified period.
Transcribed Image Text:Amada Company's standard cost system reports the following information from its December operations: - **Standard direct materials cost:** $104,000 - **Direct materials quantity variance:** $4,400 U (Unfavorable) - **Direct materials price variance:** $600 F (Favorable) - **Actual direct labor cost:** $87,000 - **Direct labor efficiency variance:** $9,500 F (Favorable) - **Actual overhead cost:** $374,500 - **Total overhead variance:** $12,000 U (Unfavorable) - **Volume variance:** $4,000 U (Unfavorable) - **Controllable variance:** $8,000 U (Unfavorable) ### Required: Prepare December 31 journal entries to record the company's costs and variances for the month for: - (a) Direct materials - (b) Direct labor - (c) Overhead Ignore the journal entry to close the variances. ### Journal Entry Worksheet The worksheet is divided into steps, with the currently selected step being step 2. #### Instructions for Step 2: Record direct labor costs and variances. #### Entry Details: - **Date:** December 31 - **General Journal Columns:** - **Debit:** [Blank fields for input] - **Credit:** [Blank fields for input] _Note: Enter debits before credits._ This setup will be used to enter financial data accurately, reflecting the transactions related to direct labor costs and variances for the specified period.
**Amada Company's Standard Cost System - December Operations Report** The report provides detailed information on Amada Company's standard cost system for December operations, focusing on the following: **Standard and Actual Costs:** - **Standard direct materials cost:** $184,000 - **Direct materials quantity variance:** 3,400 Unfavorable (U) - **Direct materials price variance:** 7,600 Favorable (F) **Labor Costs:** - **Actual direct labor cost:** $87,000 - **Direct labor efficiency variance:** 6,000 Unfavorable (U) - **Direct labor rate variance:** 9,700 Favorable (F) **Overhead Costs:** - **Actual overhead cost:** $374,500 - **Volume variance:** 12,000 Unfavorable (U) - **Controllable variance:** 8,000 Unfavorable (U) **Task Required:** The company needs to prepare December 31 journal entries to record the costs and variances for: 1. Direct materials 2. Direct labor 3. Overhead Note that the journal entry to close the variances is not required. **Journal Entry Worksheet:** This section includes a data entry table with columns for: - Date - General Journal - Debit - Credit A specific instruction is given to “Record direct materials costs and variances.” Additional Information: - There's a note to "Enter debits before credits." - The presence of numbered navigation (1, 2, 3) suggests it is part of a multi-part form or entry system. This information serves as a guide for accounting students and professionals to understand the application of standard cost systems and how to record necessary financial data in the journal entry format.
Transcribed Image Text:**Amada Company's Standard Cost System - December Operations Report** The report provides detailed information on Amada Company's standard cost system for December operations, focusing on the following: **Standard and Actual Costs:** - **Standard direct materials cost:** $184,000 - **Direct materials quantity variance:** 3,400 Unfavorable (U) - **Direct materials price variance:** 7,600 Favorable (F) **Labor Costs:** - **Actual direct labor cost:** $87,000 - **Direct labor efficiency variance:** 6,000 Unfavorable (U) - **Direct labor rate variance:** 9,700 Favorable (F) **Overhead Costs:** - **Actual overhead cost:** $374,500 - **Volume variance:** 12,000 Unfavorable (U) - **Controllable variance:** 8,000 Unfavorable (U) **Task Required:** The company needs to prepare December 31 journal entries to record the costs and variances for: 1. Direct materials 2. Direct labor 3. Overhead Note that the journal entry to close the variances is not required. **Journal Entry Worksheet:** This section includes a data entry table with columns for: - Date - General Journal - Debit - Credit A specific instruction is given to “Record direct materials costs and variances.” Additional Information: - There's a note to "Enter debits before credits." - The presence of numbered navigation (1, 2, 3) suggests it is part of a multi-part form or entry system. This information serves as a guide for accounting students and professionals to understand the application of standard cost systems and how to record necessary financial data in the journal entry format.
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