hd.11. Butrico Manufacturing Corporation uses a standard cost system, records materials price variances when direct materials arepurchased, and prorates all variances at year-end. Variances associated with direct materials are prorated based on the balances ofdirect materials in the appropriate accounts, and variances associated with direct labor and manufacturing overhead are prorated toFinished Goods Inventory and to Cost of Goods Sold (COGS) on the basis of the relative direct labor cost in these accounts at year-end.The following information is for the year ended December 31:The company had no beginning inventories and no ending Work-in-Process (WIP) Inventory. It applies manufacturing overhead at 80%of standard direct labor cost.Finished goods inventory at 12/31:Direct materialsDirect laborApplied manufacturing overheadDirect materials inventory at 12/31Cost of goods sold for the year ended 12/31:Direct materialsDirect laborApplied manufacturing overheadDirect materials price variance (unfavorable)Direct materials usage variance (favorable)Direct labor rate variance (unfavorable)Direct labor efficiency variance (favorable)Actual manufacturing overhead incurred$ 96,578144,855115,88466,100$ 386,288820,845656,67611, 10016,65022,2005,550765,900Required:1. Compute the amount of Direct Materials Price Variance to be prorated to Finished Goods Inventory at December 31.2. Compute the total amount of direct materials cost in the Finished Goods Inventory at December 31, after all materials variances havebeen prorated.3. Compute the total amount of direct labor cost in the Finished Goods Inventory at December 31, after all variances have beenprorated,4. Compute the total Cost of Goods Sold (COGS) for the year ended December 31, after all variances have been prorated.

Name: hd.11. Butrico Manufacturing Corporation uses a standard cost system,
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Description: hd.11. Butrico Manufacturing Corporation uses a standard cost system, records materials price variances when direct materials arepurchased, and prorates all variances at year-end. Variances associated with direct materials are prorated based on the b

DM price variance stands for Direct material price variance which is defined as the difference among…

Business

Accounting

Butrico Manufacturing Corporation uses a standard cost system, records materials price variances when direct materials are purchased, and prorates all variances at year-end. Variances associated with direct materials are prorated based on the balances of direct materials in the appropriate accounts, and variances associated with direct labor and manufacturing overhead are prorated to Finished Goods Inventory and to Cost of Goods Sold (COGS) on the basis of the relative direct labor cost in these accounts at year- end. The following information is for the year ended December 31: The company had no beginning inventories and no ending Work-in-Process (WIP) Inventory. It applies manufacturing overhead at 80% of standard direct labor cost. Finished goods inventory at 12/31: Direct materials Direct labor Applied manufacturing overhead Direct materials inventory at 12/31 $ 96,570 144,855 115,884 66.100

Butrico Manufacturing Corporation uses a standard cost system, records materials price variances when direct materials are purchased, and prorates all variances at year-end. Variances associated with direct materials are prorated based on the balances of direct materials in the appropriate accounts, and variances associated with direct labor and manufacturing overhead are prorated to Finished Goods Inventory and to Cost of Goods Sold (COGS) on the basis of the relative direct labor cost in these accounts at year- end. The following information is for the year ended December 31: The company had no beginning inventories and no ending Work-in-Process (WIP) Inventory. It applies manufacturing overhead at 80% of standard direct labor cost. Finished goods inventory at 12/31: Direct materials Direct labor Applied manufacturing overhead Direct materials inventory at 12/31 $ 96,570 144,855 115,884 66.100

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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