Frontier Incorporated has provided the following information for the year ended 20x8: a. Purchased raw materials on account for $240,400. b. Issued $230,400 in raw materials to production ($32,400 were not traceable to specific jobs). c. Incurred $242,400 in direct labor costs (24,520 hours) and $92,900 in supervision costs (paid in cash). d. Incurred the following additional manufacturing overhead costs: factory utilities $24,400 (paid in cash); depreciation on equipment $45,400; indirect supplies $17,900 (paid in cash). e. Incurred the following nonmanufacturing costs, both paid in cash: advertising $75,400; sales salaries $88,400. f. Applied manufacturing overhead to jobs in process at a rate of $9 per direct labor hour. g. Completed jobs costing a total of $644,400. h. Sold jobs for $856,400 on account. The cost of the jobs was $642,400. i. Closed the manufacturing overhead account balance. Required: Prepare the journal entries to record these transactions. Note: If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.

Frontier Incorporated has provided the following information for the year ended 20x8: a. Purchased raw materials on account for $240,400. b. Issued $230,400 in raw materials to production ($32,400 were not traceable to specific jobs). c. Incurred $242,400 in direct labor costs (24,520 hours) and $92,900 in supervision costs (paid in cash). d. Incurred the following additional manufacturing overhead costs: factory utilities $24,400 (paid in cash); depreciation on equipment $45,400; indirect supplies $17,900 (paid in cash). e. Incurred the following nonmanufacturing costs, both paid in cash: advertising $75,400; sales salaries $88,400. f. Applied manufacturing overhead to jobs in process at a rate of $9 per direct labor hour. g. Completed jobs costing a total of $644,400. h. Sold jobs for $856,400 on account. The cost of the jobs was $642,400. i. Closed the manufacturing overhead account balance. Required: Prepare the journal entries to record these transactions. Note: If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.

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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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Concept explainers

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.

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Required:
Prepare the journal entries to record these transactions.
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
1
Event
a
2
Note: Enter debits before credits.
3
Record entry
Record the purchase of raw materials on account.
4
5
General Journal
6
Clear entry
7
8
Debit
9
10
Credit
View general journal
>

Frontier Incorporated has provided the following information for the year ended 20x8:
a. Purchased raw materials on account for $240,400.
b. Issued $230,400 in raw materials to production ($32,400 were not traceable to specific jobs).
c. Incurred $242,400 in direct labor costs (24,520 hours) and $92,900 in supervision costs (paid in cash).
d. Incurred the following additional manufacturing overhead costs: factory utilities $24,400 (paid in cash); depreciation on equipment
$45,400; indirect supplies $17,900 (paid in cash).
e. Incurred the following nonmanufacturing costs, both paid in cash: advertising $75,400; sales salaries $88,400.
f. Applied manufacturing overhead to jobs in process at a rate of $9 per direct labor hour.
g. Completed jobs costing a total of $644,400.
h. Sold jobs for $856,400 on account. The cost of the jobs was $642,400.
i. Closed the manufacturing overhead account balance.
Required:
Prepare the journal entries to record these transactions.
Note: If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.

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