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Decena Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in which inventories are recorded at their standard costs. Information concerning the direct labor standards for the company's only product is as follows: Inputs Direct labor Labor rate variance Labor efficiency variance During the year, the company assigned direct labor costs to work in process. The direct labor workers (who were paid in cash) worked 15,830 hours at an average cost of $18.50 per hour. The company calculated the following direct labor variances for the year: Multiple Choice O Standard Quantity or Hours. 0.90 hours Assume that all transactions are recorded on the below worksheet, which is similar to the worksheet shown in your text except that it has been divided into two parts so that it fits on one page. The beginning balances in each of the accounts have been given. PP&E (net) stands for Property, Plant, and Equipment net of depreciation. $292,855 ($292,855) Standard Price or Rate $18.00 per hour ($286,740) Raw Materials Cash Work in Process $0 PP&E (net) = $ 84,945 $425,600 = 1/1 $ 1,070,000 $ 54,910 When recording the direct labor costs, the Work in Process inventory account will increase (decrease) by: $286,740 $ 7,915 U $ 1,800 F Standard Cost 16.20 Finished Goods Materials Materials Price Variance $0 Labor FOH FOH Quantity Labor Rate Efficiency Budget Volume Variance Variance Variance Variance Variance $0 $0 $0 $0 $0 Retained Earnings $ 1,635,455

Decena Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in which inventories are recorded at their standard costs. Information concerning the direct labor standards for the company's only product is as follows: Inputs Direct labor Labor rate variance Labor efficiency variance During the year, the company assigned direct labor costs to work in process. The direct labor workers (who were paid in cash) worked 15,830 hours at an average cost of $18.50 per hour. The company calculated the following direct labor variances for the year: Multiple Choice O Standard Quantity or Hours. 0.90 hours Assume that all transactions are recorded on the below worksheet, which is similar to the worksheet shown in your text except that it has been divided into two parts so that it fits on one page. The beginning balances in each of the accounts have been given. PP&E (net) stands for Property, Plant, and Equipment net of depreciation. $292,855 ($292,855) Standard Price or Rate $18.00 per hour ($286,740) Raw Materials Cash Work in Process $0 PP&E (net) = $ 84,945 $425,600 = 1/1 $ 1,070,000 $ 54,910 When recording the direct labor costs, the Work in Process inventory account will increase (decrease) by: $286,740 $ 7,915 U $ 1,800 F Standard Cost 16.20 Finished Goods Materials Materials Price Variance $0 Labor FOH FOH Quantity Labor Rate Efficiency Budget Volume Variance Variance Variance Variance Variance $0 $0 $0 $0 $0 Retained Earnings $ 1,635,455

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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Decena Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in which inventories are recorded at their standard costs. Information concerning the direct labor standards for the company's only product is as follows: Inputs Direct labor Labor rate variance Labor efficiency variance During the year, the company assigned direct labor costs to work in process. The direct labor workers (who were paid in cash) worked 15,830 hours at an average cost of $18.50 per hour. The company calculated the following direct labor variances for the year: Multiple Choice Standard Quantity or Hours 0.90 hours $292,855 Assume that all transactions are recorded on the below worksheet, which is similar to the worksheet shown in your text except that it has been divided into two parts so that it fits on one page. The beginning balances in each of the accounts have been given. PP&E (net) stands for Property, Plant, and Equipment net of depreciation. ($292,855) Standard Price or Rate $18.00 per hour. ($286,740) Cash Raw Materials $54,910 Work in Process $0 Finished Goods $ 84,945 PP&E (net) = $ 425,600 = 1/1 $ 1,070,000 When recording the direct labor costs, the Work in Process inventory account will increase (decrease) by: $286,740 Standard Cost 16.20 $ 7,915 U $ 1,800 F Materials Materials Labor FOH Price Quantity Labor Rate Efficiency Budget Variance Variance Variance Variance Variance $0 $0 $0 $0 $0 FOH Volume Variance $0 Retained Earnings $ 1,635,455
Transcribed Image Text:Decena Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in which inventories are recorded at their standard costs. Information concerning the direct labor standards for the company's only product is as follows: Inputs Direct labor Labor rate variance Labor efficiency variance During the year, the company assigned direct labor costs to work in process. The direct labor workers (who were paid in cash) worked 15,830 hours at an average cost of $18.50 per hour. The company calculated the following direct labor variances for the year: Multiple Choice Standard Quantity or Hours 0.90 hours $292,855 Assume that all transactions are recorded on the below worksheet, which is similar to the worksheet shown in your text except that it has been divided into two parts so that it fits on one page. The beginning balances in each of the accounts have been given. PP&E (net) stands for Property, Plant, and Equipment net of depreciation. ($292,855) Standard Price or Rate $18.00 per hour. ($286,740) Cash Raw Materials $54,910 Work in Process $0 Finished Goods $ 84,945 PP&E (net) = $ 425,600 = 1/1 $ 1,070,000 When recording the direct labor costs, the Work in Process inventory account will increase (decrease) by: $286,740 Standard Cost 16.20 $ 7,915 U $ 1,800 F Materials Materials Labor FOH Price Quantity Labor Rate Efficiency Budget Variance Variance Variance Variance Variance $0 $0 $0 $0 $0 FOH Volume Variance $0 Retained Earnings $ 1,635,455
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