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Bramble Company installed a standard cost system on January 1. Selected transactions for the month of January are as follows. 1. Purchased 16,000 units of raw materials on account at a cost of $3.90 per unit. Standard cost was $3.50 per unit. 2. Issued 16,000 units of raw materials for jobs that required 15,600 standard units of raw materials. 3. Incurred 16,000 actual hours of direct labor at an actual rate of $4.20 per hour. The standard rate is $4.70 per hour. (Credit Factory Wages Payable.) 4. Performed 16,000 hours of direct labor on jobs when standard hours were 16,180. 5. Applied overhead to jobs at the rate of 100% of direct labor cost for standard hours allowed. No. Account Titles and Explanation 1. Raw Materials Inventory Accounts Payable Materials Price Variance Debit 62400 6400 2. Work in Process Inventory 54600 Raw Materials Inventory Materials Quantity Variance 3. Factory Labor Factory Wages Payable 1400 67200 Labor Price Variance 8000 4. Work in Process Inventory 75646 Factory Labor Labor Quantity Variance 846 5. Work in Process Inventory 75646 Manufacturing Overhead Credit 62400 54600 67200 75646 75646

Bramble Company installed a standard cost system on January 1. Selected transactions for the month of January are as follows. 1. Purchased 16,000 units of raw materials on account at a cost of $3.90 per unit. Standard cost was $3.50 per unit. 2. Issued 16,000 units of raw materials for jobs that required 15,600 standard units of raw materials. 3. Incurred 16,000 actual hours of direct labor at an actual rate of $4.20 per hour. The standard rate is $4.70 per hour. (Credit Factory Wages Payable.) 4. Performed 16,000 hours of direct labor on jobs when standard hours were 16,180. 5. Applied overhead to jobs at the rate of 100% of direct labor cost for standard hours allowed. No. Account Titles and Explanation 1. Raw Materials Inventory Accounts Payable Materials Price Variance Debit 62400 6400 2. Work in Process Inventory 54600 Raw Materials Inventory Materials Quantity Variance 3. Factory Labor Factory Wages Payable 1400 67200 Labor Price Variance 8000 4. Work in Process Inventory 75646 Factory Labor Labor Quantity Variance 846 5. Work in Process Inventory 75646 Manufacturing Overhead Credit 62400 54600 67200 75646 75646

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Bramble Company installed a standard cost system on January 1. Selected transactions for the month of January are as follows. 1. Purchased 16,000 units of raw materials on account at a cost of $3.90 per unit. Standard cost was $3.50 per unit. 2. Issued 16,000 units of raw materials for jobs that required 15,600 standard units of raw materials. 3. Incurred 16,000 actual hours of direct labor at an actual rate of $4.20 per hour. The standard rate is $4.70 per hour. (Credit Factory Wages Payable.) 4. Performed 16,000 hours of direct labor on jobs when standard hours were 16,180. 5. Applied overhead to jobs at the rate of 100% of direct labor cost for standard hours allowed.
Transcribed Image Text:Bramble Company installed a standard cost system on January 1. Selected transactions for the month of January are as follows. 1. Purchased 16,000 units of raw materials on account at a cost of $3.90 per unit. Standard cost was $3.50 per unit. 2. Issued 16,000 units of raw materials for jobs that required 15,600 standard units of raw materials. 3. Incurred 16,000 actual hours of direct labor at an actual rate of $4.20 per hour. The standard rate is $4.70 per hour. (Credit Factory Wages Payable.) 4. Performed 16,000 hours of direct labor on jobs when standard hours were 16,180. 5. Applied overhead to jobs at the rate of 100% of direct labor cost for standard hours allowed.
No. Account Titles and Explanation 1. Raw Materials Inventory Accounts Payable Materials Price Variance Debit 62400 6400 2. Work in Process Inventory 54600 Raw Materials Inventory Materials Quantity Variance 3. Factory Labor Factory Wages Payable 1400 67200 Labor Price Variance 8000 4. Work in Process Inventory 75646 Factory Labor Labor Quantity Variance 846 5. Work in Process Inventory 75646 Manufacturing Overhead Credit 62400 54600 67200 75646 75646
Transcribed Image Text:No. Account Titles and Explanation 1. Raw Materials Inventory Accounts Payable Materials Price Variance Debit 62400 6400 2. Work in Process Inventory 54600 Raw Materials Inventory Materials Quantity Variance 3. Factory Labor Factory Wages Payable 1400 67200 Labor Price Variance 8000 4. Work in Process Inventory 75646 Factory Labor Labor Quantity Variance 846 5. Work in Process Inventory 75646 Manufacturing Overhead Credit 62400 54600 67200 75646 75646
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