In all of the exercises involving variances, use "F" and "U" to designate favorable and unfavorable variances, respectively. E8-1 through E8-5 use the following data: The standard operating capacity of Tecate Manufacturing Co. is 1,000 units. A detailed study of the manufacturing data relating to the standard production cost of one product revealed the following: 1. Two pounds of materials are needed to produce one unit. 2. Standard unit cost of materials is $8 per pound. 3. It takes one hour of Ilabor to produce one unit. 4. Standard labor rate is $10 per hour. 5. Standard overhead (all variable) for this volume is $4,000. Each case in E8-1 through E8-5 requires the following: a. Set up a standard cost summary showing the standard unit cost. b. Analyze the variances for materials and labor. С. Make journal entries to record the transfer to Work in Process of: 1. Materials costs 2. Labor costs 3. Overhead costs (When making these entries, include the variances.) d. Prepare the journal entry to record the transfer of costs to the finished goods account. Standard unit cost; variance analysis; journal entries 1,000 units were started and finished. E8-1 Case 1: All prices and quantities for the cost elements are stan- dard, except for materials cost, which is $8.50 per pound. Case 2: All prices and quantities for the cost elements are stan- dard, except that 1,900 lb of materials were used. Standard unit cost; variance analysis; journal entries 1,000 units were started and finished. E8-2 Case 1: All prices and quantities are standard, except for the labor rate, which is $10.20 per hour. Case 2: All prices and quantities are standard, except for labor hours, which totaled 900. Computing standard unit cost; variance analysis; journal entries All of the deviations listed in E8-1 and E8-2 took place, and 1,000 units were started and finished. (Note that the quantities used will affect the rate variances for materials and labor.) E8-3

FINANCIAL ACCOUNTING

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ISBN:9781259964947

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Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Hi,

Please help with at least E8-1, E8-2, and E8-3. Then if you don't want to do E8-4 and E8-5, can you show the work for E8-3 so that I can just change the numbers to work?

Thank you very much.

Standard unit cost; variance analysis; journal entries
All of the deviations listed in E8-1 and E8-2 took place, and 900
units were started and finished.
E8-4
Standard unit cost; variance analysis; journal entries
All of the deviations listed in E8-1 and E8-2 took place, and 1,100
units were started and finished.
E8-5

In all of the exercises involving variances, use "F" and "U" to
designate favorable and unfavorable variances, respectively.
E8-1 through E8-5 use the following data:
The standard operating capacity of Tecate Manufacturing Co. is
1,000 units. A detailed study of the manufacturing data relating to
the standard production cost of one product revealed the following:
1. Two pounds of materials are needed to produce one unit.
2. Standard unit cost of materials is $8 per pound.
3. It takes one hour of Ilabor to produce one unit.
4. Standard labor rate is $10 per hour.
5. Standard overhead (all variable) for this volume is $4,000.
Each case in E8-1 through E8-5 requires the following:
a. Set up a standard cost summary showing the standard unit
cost.
b. Analyze the variances for materials and labor.
С.
Make journal entries to record the transfer to Work in Process
of:
1. Materials costs
2. Labor costs
3. Overhead costs
(When making these entries, include the variances.)
d. Prepare the journal entry to record the transfer of costs to the
finished goods account.
Standard unit cost; variance analysis; journal entries
1,000 units were started and finished.
E8-1
Case 1: All prices and quantities for the cost elements are stan-
dard, except for materials cost, which is $8.50 per pound.
Case 2: All prices and quantities for the cost elements are stan-
dard, except that 1,900 lb of materials were used.
Standard unit cost; variance analysis; journal entries
1,000 units were started and finished.
E8-2
Case 1: All prices and quantities are standard, except for the labor
rate, which is $10.20 per hour.
Case 2: All prices and quantities are standard, except for labor
hours, which totaled 900.
Computing standard unit cost; variance analysis; journal entries
All of the deviations listed in E8-1 and E8-2 took place, and 1,000
units were started and finished. (Note that the quantities used will
affect the rate variances for materials and labor.)
E8-3

Expert Solution

Interpretation of Data:

As you have posted multiple independent questions, we will answer first three sub-parts. Kindly re-post the unanswered questions as a separate question.

Particulars	Amount
Materials	16000
1000Units2pounds$8
Labor	10000
1000 Units1Hour$10
Factory Overhead	4000
Total Standard Cost	30000

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