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c. (Appendix) Prepare the journal entries to record the activity for the last period using standard costing. Assume that all variances are closed to Cost of Goods Sold at the end of the operating period.

c. (Appendix) Prepare the journal entries to record the activity for the last period using standard costing. Assume that all variances are closed to Cost of Goods Sold at the end of the operating period.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Complete this question by entering your answers in the tabs below. Required A Required B Required C (Appendix) Prepare the journal entries to record the activity for the last period using standard costing. Assume that all variances are closed to Cost of Goods Sold at the end of the operating period. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet B C D < A Note: Enter debits before credits. Event 1 Record entry for direct material costs payable and material variances. Work-in-process inventory Record entry E General Journal Clear entry F G < Required B H Debit Credit L View general journal Required C > >
Transcribed Image Text:Complete this question by entering your answers in the tabs below. Required A Required B Required C (Appendix) Prepare the journal entries to record the activity for the last period using standard costing. Assume that all variances are closed to Cost of Goods Sold at the end of the operating period. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet B C D < A Note: Enter debits before credits. Event 1 Record entry for direct material costs payable and material variances. Work-in-process inventory Record entry E General Journal Clear entry F G < Required B H Debit Credit L View general journal Required C > >
The River Plant of Carlisle, Incorporated produces a particular metal fixture used in aerospace and maritime industries. The following information is available for the last operating month: • The plant produced and sold 29,164 fixtures for $72 each. Budgeted production was 30,000 fixtures. Standard variable costs per fixture follow: Direct materials: 4 pounds at $4 Direct labor: 0.1 hours at $40 Variable production overhead: 0.4 machine-hours at $20 per hour Total variable costs. • Fixed production overhead costs: Monthly budget $816,800 Fixed overhead is applied at the rate of $30 per fixture. Actual production costs: Direct materials purchased and used: 106,700 pounds at $4.37 Direct labor: 2,900 hours at $44.75 Variable overhead: 12,100 machine-hours at $19.57 per hour Fixed overhead $ 16.00 4.00 8.00 $28.00 $ 466,279 129,775 236,797 868,000 Required: a. Prepare a cost variance analysis for each variable cost for the River Plant. b. Prepare a fixed overhead cost variance analysis. c. (Appendix) Prepare the journal entries to record the activity for the last period using standard costing. Assume that all variances are closed to Cost of Goods Sold at the end of the operating period.
Transcribed Image Text:The River Plant of Carlisle, Incorporated produces a particular metal fixture used in aerospace and maritime industries. The following information is available for the last operating month: • The plant produced and sold 29,164 fixtures for $72 each. Budgeted production was 30,000 fixtures. Standard variable costs per fixture follow: Direct materials: 4 pounds at $4 Direct labor: 0.1 hours at $40 Variable production overhead: 0.4 machine-hours at $20 per hour Total variable costs. • Fixed production overhead costs: Monthly budget $816,800 Fixed overhead is applied at the rate of $30 per fixture. Actual production costs: Direct materials purchased and used: 106,700 pounds at $4.37 Direct labor: 2,900 hours at $44.75 Variable overhead: 12,100 machine-hours at $19.57 per hour Fixed overhead $ 16.00 4.00 8.00 $28.00 $ 466,279 129,775 236,797 868,000 Required: a. Prepare a cost variance analysis for each variable cost for the River Plant. b. Prepare a fixed overhead cost variance analysis. c. (Appendix) Prepare the journal entries to record the activity for the last period using standard costing. Assume that all variances are closed to Cost of Goods Sold at the end of the operating period.
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