Huckvale Corporation manufactures custom cabinets for kitchens. It uses a normal-costing system with two direct cost categories-direct materials and direct manufacturing labor-and one indirect cost pool, manufacturing overhead costs. It provides the following information for April 2020: possible The following information is also available for 2020: (Click the icon to view the additional information.) Read the requirement Present the journal entry for (a) usage of direct and indirect materials. (Record debits first, then credits. Explanations are not required.) Journal Entry Accounts Present the journal entry for (b) manufacturing labor incurred. Data table Journal Entry Debit Credit Actual direct materials used $ 20,000 Actual direct manufacturing labor costs paid in cash $ 50,000 Indirect materials used $ 2,000 Supervision and engineering salaries paid in cash $ 49,000 Plant utilities and repairs paid in cash $ 7,000 Plant depreciation $ 20,000 Actual direct manufacturing labor-hours 3,000 Cost of individual jobs completed and transferred to finished goods $ 230,000 Cost of goods sold Data table $225,000 - X UUUU Budgeted manufacturing overhead costs $ 1,160,000 Budgeted direct manufacturing labor-hours 29,000 hours Next
Huckvale Corporation manufactures custom cabinets for kitchens. It uses a normal-costing system with two direct cost categories-direct materials and direct manufacturing labor-and one indirect cost pool, manufacturing overhead costs. It provides the following information for April 2020: possible The following information is also available for 2020: (Click the icon to view the additional information.) Read the requirement Present the journal entry for (a) usage of direct and indirect materials. (Record debits first, then credits. Explanations are not required.) Journal Entry Accounts Present the journal entry for (b) manufacturing labor incurred. Data table Journal Entry Debit Credit Actual direct materials used $ 20,000 Actual direct manufacturing labor costs paid in cash $ 50,000 Indirect materials used $ 2,000 Supervision and engineering salaries paid in cash $ 49,000 Plant utilities and repairs paid in cash $ 7,000 Plant depreciation $ 20,000 Actual direct manufacturing labor-hours 3,000 Cost of individual jobs completed and transferred to finished goods $ 230,000 Cost of goods sold Data table $225,000 - X UUUU Budgeted manufacturing overhead costs $ 1,160,000 Budgeted direct manufacturing labor-hours 29,000 hours Next
Chapter1: Financial Statements And Business Decisions
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Variance Analysis
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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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Please help with the following questions and refer to the data tables to answer part a, b and c
![Huckvale Corporation manufactures custom cabinets for
kitchens. It uses a normal-costing system with two direct cost
categories-direct materials and direct manufacturing
labor and one indirect cost pool, manufacturing overhead
costs. It provides the following information for April 2020:
possible
The following information is also available for 2020:
(Click the icon to view the additional information.)
Read the requirement.
Present the journal entry for (a) usage of direct and indirect materials. (Record debits first, then credits. Explanations are
not required.)
(a)
Journal Entry
Accounts
Present the journal entry for (b) manufacturing labor incurred.
Data table
Journal Entry
Debit
Credit
Actual direct materials used
$
20,000
Actual direct manufacturing labor costs paid in cash
$
50,000
Indirect materials used
$
2,000
Supervision and engineering salaries paid in cash
$
49,000
Plant utilities and repairs paid in cash
$
7,000
Plant depreciation
$ 20,000
3,000
Actual direct manufacturing labor-hours
Cost of individual jobs completed and transferred to finished goods
Cost of goods sold
$ 230,000
$ 225,000
Data table
- X
Budgeted manufacturing overhead costs
$
1,160,000
Budgeted direct manufacturing labor-hours
29,000 hours
Next](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbe3f4c8b-e82c-4d0b-9044-961c719625af%2F16780cca-af63-498a-bf63-a20f52cea645%2Flh2qubg_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Huckvale Corporation manufactures custom cabinets for
kitchens. It uses a normal-costing system with two direct cost
categories-direct materials and direct manufacturing
labor and one indirect cost pool, manufacturing overhead
costs. It provides the following information for April 2020:
possible
The following information is also available for 2020:
(Click the icon to view the additional information.)
Read the requirement.
Present the journal entry for (a) usage of direct and indirect materials. (Record debits first, then credits. Explanations are
not required.)
(a)
Journal Entry
Accounts
Present the journal entry for (b) manufacturing labor incurred.
Data table
Journal Entry
Debit
Credit
Actual direct materials used
$
20,000
Actual direct manufacturing labor costs paid in cash
$
50,000
Indirect materials used
$
2,000
Supervision and engineering salaries paid in cash
$
49,000
Plant utilities and repairs paid in cash
$
7,000
Plant depreciation
$ 20,000
3,000
Actual direct manufacturing labor-hours
Cost of individual jobs completed and transferred to finished goods
Cost of goods sold
$ 230,000
$ 225,000
Data table
- X
Budgeted manufacturing overhead costs
$
1,160,000
Budgeted direct manufacturing labor-hours
29,000 hours
Next
![Sparkle Corporation manufactures and sells two types of decorative lamps, Knox and Ayer. It expects to manufacture 26,000
Knox lamps and 12,000 Ayer lamps in 2020. The following data are available for the year 2020.
(Click the icon to view the information.)
(Click the icon to view the December312020production budget in units.)
Calculate (a) the direct materials usage budget in quantity and dollars (label it Schedule 3A); (b) the direct materials purchase
budget in quantity and dollars (label it Schedule 3B); and (c) the direct manufacturing labor costs budget (label it Schedule 4) for
the year ending December312020.
(b). Calculate the direct materials purchase budget in quantity and dollars (label it Schedule 3B) for the year ending December
31, 2020.
Schedule 3B: Direct Material Purchases Budget
for the Year Ending December 31, 2020
Materials
Metal
Fabric
Total
Physical Units Budget
To be used in production
lbs.
yards
Add target ending inventory
lbs.
yards
Total requirements
lbs.
yards
Deduct beginning inventory
lbs.
yards
Purchases to be made
lbs.
yards
Cost Budget
Metal
Fabric
Direct materials to be purchased this period
(c). Calculate the direct manufacturing labor costs budget (label it Schedule 4) for the year ending December 31, 2020. (Enter the
DMLH per unit to two decimal places. Abbreviations used: DMLH = Direct manufacturing labor-hours.)
Schedule 4: Direct Manufacturing Labor Costs Budget
Knox
Ayer
Total
for the Year Ending December 31, 2020
Output units
DMLH
Total
Hourly
produced
per unit
hours
wage rate
Total](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbe3f4c8b-e82c-4d0b-9044-961c719625af%2F16780cca-af63-498a-bf63-a20f52cea645%2F4p2egc_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Sparkle Corporation manufactures and sells two types of decorative lamps, Knox and Ayer. It expects to manufacture 26,000
Knox lamps and 12,000 Ayer lamps in 2020. The following data are available for the year 2020.
(Click the icon to view the information.)
(Click the icon to view the December312020production budget in units.)
Calculate (a) the direct materials usage budget in quantity and dollars (label it Schedule 3A); (b) the direct materials purchase
budget in quantity and dollars (label it Schedule 3B); and (c) the direct manufacturing labor costs budget (label it Schedule 4) for
the year ending December312020.
(b). Calculate the direct materials purchase budget in quantity and dollars (label it Schedule 3B) for the year ending December
31, 2020.
Schedule 3B: Direct Material Purchases Budget
for the Year Ending December 31, 2020
Materials
Metal
Fabric
Total
Physical Units Budget
To be used in production
lbs.
yards
Add target ending inventory
lbs.
yards
Total requirements
lbs.
yards
Deduct beginning inventory
lbs.
yards
Purchases to be made
lbs.
yards
Cost Budget
Metal
Fabric
Direct materials to be purchased this period
(c). Calculate the direct manufacturing labor costs budget (label it Schedule 4) for the year ending December 31, 2020. (Enter the
DMLH per unit to two decimal places. Abbreviations used: DMLH = Direct manufacturing labor-hours.)
Schedule 4: Direct Manufacturing Labor Costs Budget
Knox
Ayer
Total
for the Year Ending December 31, 2020
Output units
DMLH
Total
Hourly
produced
per unit
hours
wage rate
Total
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