Exercise 1) Deporte Company produces single-colored t-shirts. Material for the shirts are dyed in large vats. After dying the materials for a given color, the vats must be cleaned and prepared for the next batch of materials to be colored. The following standards for changeover for a given batch have been established: Direct materials (1.6lbs. @ $0.95) Direct labor (0.75 hr. @ $7.40) Standard prime cost $1.52 5.55 $7.07 During the year, 50,000 pounds of material were purchased and used for the changeover activity. There were 30,300 batches produced, with the following actual prime costs: Direct materials $49,500 Direct labor $169,875 (for 22,500 hrs.) Required: Compute MPV, MUV, LRV, and LEV.

Exercise 1) Deporte Company produces single-colored t-shirts. Material for the shirts are dyed in large vats. After dying the materials for a given color, the vats must be cleaned and prepared for the next batch of materials to be colored. The following standards for changeover for a given batch have been established: Direct materials (1.6lbs. @ $0.95) Direct labor (0.75 hr. @ $7.40) Standard prime cost $1.52 5.55 $7.07 During the year, 50,000 pounds of material were purchased and used for the changeover activity. There were 30,300 batches produced, with the following actual prime costs: Direct materials $49,500 Direct labor $169,875 (for 22,500 hrs.) Required: Compute MPV, MUV, LRV, and LEV.

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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Deporte Company produces single-colored t-shirts. Materials for the shirts are dyed in large vats. After dying the materials for a given color, the vats must be cleaned and prepared for the next batch of materials to be colored. The following standards for changeover for a given batch have been established: 1 Direct materials (2.8 lbs. @ $0.80) $2.24 2 Direct labor (0.80 hr. @ $7.2) 5.76 3 Standard prime cost $8.00 During the year, 103,700 pounds of material were purchased and used for the changeover activity. There were 34,000 batches produced, with the following actual prime costs: Direct materials $66,622 Direct labor (for 27,143 hrs.) $192,111 Required: 1. Prepare a journal entry on Dec. 31 for the purchase of raw materials. Record the transaction as a compound entry. 2. Prepare a journal entry on Dec. 31 for the issuance of raw materials. Record the transaction as a compound entry. 3. Prepare a journal entry…
Chapter 20. Question 7. Please fill out in same format as question so it's easy to read :)
Required:(a) Compute the equivalent units for direct materials (From Moulding & Direct materialsadded) and conversion costs.(b) Compute the: Cost per equivalent unit for direct materials and conversion costs Total cost of the skis completed and transferred out to the Packing Department. Cost of the unexpected losses Cost of ending work in process inventory in the Spraying Department.
Michael's Pottery makes decorative garden pieces using three consecutive processes: Moulding, Baking & Spraying. Quality control check takes place during the process, at which point, rejected units are separated from good units. The following details relate to production for the month of October 2020, for the Baking Department. i) Work-in-process, October 1: -0- ii) Transfer from Moulding: 2,000 units valued at $336.40 each iii) Other manufacturing costs incurred during October: Direct material added $202,120 Direct Manufacturing Wages $212,840 Manufacturing Overhead Applied $306,160 iv) Normal losses are estimated to be 5% of the units transferred in during the period. Losses from the Baking Department are deemed to be scrap and sold at $382 each. v) At inspection 300 decorative pieces were rejected as scrap. These units had reached the following degree of completion: From Moulding 100% Direct material added 40% Conversion costs 12%% vi) 1,200 pieces were completed and transferred out…
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Noora Company manufactures quality hair care product . The ingredients are combine in the mixing department and put in 16 - ounce containers in the packaging department . The following information pertains to the mixing department for the month of May 2021 : Required: D) Develop a cost reconciliation for the mixing department for the month of May .
Deporte Company produces single-colored t-shirts. Materials for the shirts are dyed in large vats. After dying the materials for a given color, the vats must be cleaned and prepared for the next batch of materials to be colored. The following standards for changeover for a given batch have been established: 1 Direct materials (2.4 lbs. @ $0.95) $2.28 2 Direct labor (0.75 hr. @ $7.40) 5.55 3 Standard prime cost $7.83 During the year, 79,500 pounds of material were purchased and used for the changeover activity. There were 30,000 batches produced, with the following actual prime costs: Direct materials $ 63,000 Direct labor (for 22,450 hrs.) $163,385 Required: 1. Prepare a journal entry on Dec. 31 for the purchase of raw materials. Record the transaction as a compound entry. 2. Prepare a journal entry on Dec. 31 for the issuance of raw materials. Record the transaction as a compound entry. 3. Prepare a journal entry…
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Michael’s Pottery makes decorative garden pieces using three consecutive processes: Moulding, Baking & Spraying. Quality control check takes place during the process, at which point, rejected units are separated from good units. The following details relate to production for the month of October 2020, for the Baking Department. Work-in-process, October 1: -0- Transfer from Moulding: 2,000 units valued at $336.40 each Other manufacturing costs incurred during October: Direct material added Direct Manufacturing Wages Manufacturing Overhead Applied $202,120 $212,840 $306,160 Normal losses are estimated to be 5% of the units transferred in during the period. Losses from the Baking Department are deemed to be scrap and sold at $382 each. At inspection 300 decorative pieces were rejected as scrap. These units had reached the following degree of completion: From Moulding 100% Direct material added 40% Conversion costs 12½% 1,200 pieces were completed and transferred out to the…
Deporte Company produces single-colored T-shirts. Materials for the shirts are dyed inlarge vats. After dying the materials for a given color, the vats must be cleaned and preparedfor the next batch of materials to be colored. The following standards for changeover for agiven batch have been established:Direct materials (2.4 lbs. @ $0.95) $2.28Direct labor (0.75 hr. @ $7.40) 5.55Standard prime cost $7.83During the year, 79,500 pounds of material were purchased and used for the changeoveractivity. There were 30,000 batches produced, with the following actual prime costs:Direct materials $ 63,000Direct labor $163,385 (for 22,450 hrs.) Refer to the information for Deporte Company above.Required:Compute the materials and labor variances associated with the changeover activity, labelingeach variance as favorable or unfavorable.
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