Exercise 17-23 (Algo) Prorating Direct Materials Cost Variances (LO 17-1)Fischer Fabrication reported the following information concerning its direct materials:Direct materials purchased (actual)Standard cost of materials purchasedStandard price times actual amount of materials usedActual productionStandard direct materials costs per unit produced$ 369,900$ 355,500$ 327,50055,700 units$6Assume that Fischer Fabrication had no beginning finished goods inventory and only produced one product. A count of inventoryshowed that 4,456 units remained in the warehouse.Required:a. Assume Fischer writes off all variances to Cost of Goods Sold. Prepare the entries Fischer would make to record and close out thevariances.b. Assume Fischer prorates all variances to the appropriate accounts. Prepare the entries Fischer would make to record and close outthe variances.

The objective of the question is to prepare the journal entries to record and close out the…

Answered: Exercise 17-23 (Algo) Prorating Direct…

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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for Combs Company andard cost was $12,000 a. Furchased 6,000 b. Issued 5.600 units of raw materials for production. The standard units were 5,800. Journalize labor variances. *BE11.9 (LO 5), AP Journalize the following transactions for Shelton, Inc. a. Incurred direct labor costs of $24,000 for 3,000 hours. The standard labor cost was $24,900. b. Assigned 3,000 direct labor hours costing $24,000 to production. Standard hours were 3,150. Compute the overhead controllable variance.
Problem 5 (Direct Materials and Direct Labor Variance): The following were taken from the standard cost card of Palawan Corporation: Standard Particular Standard Cost Quantity per unit Direct Materials P 2.00/kilo P 4.00/hour 4 kilos Direct Labor 5 hours The actual result of operation for the recent year includes the following information: Direct materials were purchased at P28,750 resulting to a price variance of P5,750 unfavorable while total direct materials variance amounted to P4,750 unfavorable. Direct labor efficiency variance is P6,000 unfavorable while rate variance is P4,125 unfavorable. Required: 1. How many units were produccử curing the period? 2. How many kilos of direct materials were actually purchased and used? How much is the actual purchase price per kilo of direct materials? 4. How many direct labor hours were actually utilized during the period? 5. How much is the actual rate per hour of direct labor? 3.
Standard Direct Materials Cost per Unit from Variance Data The following data relating to direct materials cost for October of the current year are taken from the records of Good Clean Fun Inc., a manufacturer of organic toys: Quantity of direct materials used 5,800 lbs. Actual unit price of direct materials $3.90 per lb. Units of finished product manufactured 1,390 units Standard direct materials per unit of finished product 4 lbs. Direct materials quantity variance—unfavorable $984 Direct materials price variance—favorable $1,160 Determine the standard direct materials cost per unit of finished product, assuming that there was no inventory of work in process at either the beginning or the end of the month. If required, round your standard cost per unit answer to two decimal places. Product finished units Standard finished product for direct materials used units Deficiency of finished product for materials used units Standard cost for direct materials…
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Exercise 17-22 (Algo) Variable Cost Variances: Materials Purchased and Materials Used Are Not Equal (LO 17-2) Fischer Fabrication reported the following information concerning its direct materials: Direct materials purchased (actual) Standard cost of materials purchased Standard price times actual amount of materials used. Actual production Standard direct materials costs per unit produced Direct Materials Price variance $ 375,800 $361,000 Efficiency variance Total direct materials cost variance $ 333,000 Required: Compute the direct materials cost variances. Note: Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. 56,800 units $ 6
Standard Direct Materials Cost per Unit from Variance Data The following data relating to direct materials cost for October of the current year are taken from the records of Good Clean Fun Inc., a manufacturer of organic toys: Quantity of direct materials used 6,700 lb. Actual unit price of direct materials $5.60 per Ib. Units of finished product manufactured 3,220 units Standard direct materials per unit of finished product 2 lb. Direct materials quantity variance-unfavorable $1,482 Direct materials price variance-unfavorable $670 Determine the standard direct materials cost per unit of finished product, assuming that there was no inventory of work in process at either the beginning or end of the month. If required, round your standard cost per unit answer to two decimal places. Product finished units Standard finished product for direct materials used units Deficiency of finished product for materials used units Standard cost for direct materials per unit
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Ex. 6-1. Materials Cost Variances. Carmen Company produces and selle product with the following material standards: Quantity - 5 liters of raw materials per unit Price P7.00 per liter Actual data on production and material costs for the previous month were gathered as follows: Production - 3,000 units of product Quantity of materials purchased - 20,000 liters Quantity of materials used 14,000 liters Price paid for materials purchased - P7.10 per liter Required: a. Determine the total materials cost variance. b. Compute the price and quantity variances. c. Determine the purchase price variance.
Exercise 17-24 (Algo) Variable Cost Variances: Materials Purchased and Materials Used Are Not Equal (LO 17-2) The cost analyst for Sheffer Systems collected the following data concerning direct materials: Actual production Direct materials purchased (actual) Standard cost of materials purchased Standard direct materials costs per unit produced Standard price times actual amount of materials used. Direct Materials variance 37,100 units Required: Compute the direct materials cost variances. Note: Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option. Efficiency variance Total direct materials cost variance $ 718,500 723,300 17 648,200
Standard Direct Materials Cost per Unit from Variance Data The following data relating to direct materials cost for October of the current year are taken from the records of Good Clean Fun Inc., a manufacturer of organic toys: Quantity of direct materials used 7,600 Ib. Actual unit price of direct materials $4.00 per Ib. Units of finished product manufactured 3,650 units Standard direct materials per unit of finished product 2 lb. Direct materials quantity variance-unfavorable $1,260 Direct materials price variance-unfavorable $1,520 Determine the standard direct materials cost per unit of finished product, assuming that there was no inventory of work in process at either the beginning or end of the month. If required, round your standard cost per unit answer to two decimal places. Product finished units Standard finished product for direct materials used units Deficiency of finished product for materials used units Standard cost for direct materials per unit
1. Information for HUNTER X HUNTER direct material cost for July 2012 is as follows; Actual quantity of direct materials purchased and used is 50,000 kilos, actual cost of direct materials of P 175,000; Unfavorable direct material usage variance of P 8,000 and standard quantity of direct materials allowed for production is 48,000 kilos. What is the direct materials price variance? 2. Image attached

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