Mirembe PLC manufactures recyclable soft-drink cans. A unit of production is a case of 12 dozen cans. The following standards have been set by the production-engineering staff and the controller. Direct Labor: Direct Material: Quantity, 0.29 hour Quantity, 8 kilograms Rate, $14.50 per hour Price, $0.68 per kilogram Actual material purchases amounted to 412,800 kilograms at $0.700 per kilogram. Actual costs incurred in the production of 48,000 units were as follows: Direct labor: $228,096 for 15,360 hours Direct material: $273,840 for 391,200 kilograms Required: post the above journal entries to the relevant t-accounts listed below: Raw Material inventory Work in process inventory Accounts payable Wages payable Cost of goods sold Direct material purchase variance Direct material quantity variance Direct labour rate variance Direct labour efficiency variance
Mirembe PLC manufactures recyclable soft-drink cans. A unit of production is a case of 12 dozen cans. The following standards have been set by the production-engineering staff and the controller. Direct Labor: Direct Material: Quantity, 0.29 hour Quantity, 8 kilograms Rate, $14.50 per hour Price, $0.68 per kilogram Actual material purchases amounted to 412,800 kilograms at $0.700 per kilogram. Actual costs incurred in the production of 48,000 units were as follows: Direct labor: $228,096 for 15,360 hours Direct material: $273,840 for 391,200 kilograms Required: post the above journal entries to the relevant t-accounts listed below: Raw Material inventory Work in process inventory Accounts payable Wages payable Cost of goods sold Direct material purchase variance Direct material quantity variance Direct labour rate variance Direct labour efficiency variance
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Mirembe PLC manufactures recyclable soft-drink cans. A unit of production is a case of 12 dozen cans. The following standards have been set by the production-engineering staff and the controller.
| Direct Labor: | Direct Material: |
|---|---|
| Quantity, 0.29 hour | Quantity, 8 kilograms |
| Rate, $14.50 per hour | Price, $0.68 per kilogram |
Actual material purchases amounted to 412,800 kilograms at $0.700 per kilogram. Actual costs incurred in the production of 48,000 units were as follows:
| Direct labor: | $228,096 for 15,360 hours |
|---|---|
| Direct material: | $273,840 for 391,200 kilograms |
Required: post the above journal entries to the relevant t-accounts listed below:
Raw Material inventory
Work in process inventory
Accounts payable
Wages payable
Cost of goods sold
Direct material purchase variance
Direct material quantity variance
Direct labour rate variance
Direct labour efficiency variance
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