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
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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Please help with the following questions and refer to the data tables to answer part a, b and c
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