Panagra, Inc. is a manufacturer of digital cameras. It has two departments: assembly and testing. In January 2020, the company incurred $775,000 on direct materials and $816,000 on conversion costs, for total manufacturing cost of $1,591,000. During February 10,000 cameras are placed into production, but only 9,000 cameras are fully completed at the end of the month. All direct materials have been added the remaining 1,000 cameras. However, on average, these remaining 1,000 cameras are only 60% complete as to conversion costs. (Click the icon to view the data on the cameras.) Read the requirement. Prepare summary journal entries for the use of direct materials and incurrence of conversion costs. (Record debits first, then credits. Exclude explanations from any journal entries.) Begin by recording the purchase and use of direct materials. Journal Entry Date JE 1 Accounts Debit Credit Requirement Prepare summary journal entries for the use of direct materials and incurrence of conversion costs. Also prepare a journal entry to transfer out the cost of goods completed. Show the postings to the work-in-process account. Print Done

Panagra, Inc. is a manufacturer of digital cameras. It has two departments: assembly and testing. In January 2020, the company incurred $775,000 on direct materials and $816,000 on conversion costs, for total manufacturing cost of $1,591,000. During February 10,000 cameras are placed into production, but only 9,000 cameras are fully completed at the end of the month. All direct materials have been added the remaining 1,000 cameras. However, on average, these remaining 1,000 cameras are only 60% complete as to conversion costs. (Click the icon to view the data on the cameras.) Read the requirement. Prepare summary journal entries for the use of direct materials and incurrence of conversion costs. (Record debits first, then credits. Exclude explanations from any journal entries.) Begin by recording the purchase and use of direct materials. Journal Entry Date JE 1 Accounts Debit Credit Requirement Prepare summary journal entries for the use of direct materials and incurrence of conversion costs. Also prepare a journal entry to transfer out the cost of goods completed. Show the postings to the work-in-process account. Print Done

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Deluxe Fender, which uses a standard cost system, manufactured 20,000 boat fenders during 2024, using 144,000 square feet of extruded vinyl purchased at $1.50 per square foot. Production required 440 direct labor hours that cost $13.50 per hour. The direct materials standard was seven square feet of vinyl per fender, at a standard cost of $1.55 per square foot. The labor standard was 0.025 direct labor hour per fender, at a standard cost of $12.50 per hour. Read the requirement1. Begin with the cost variances. Select the required formulas, compute the cost variances for direct materials and direct labor, and identify whether each variance is favorable (F) or unfavorable (U).(Abbreviations used: AC = actual cost; AQ = actual quantity; FOH = fixed overhead; SC = standard cost; SQ = standard quantity.) Formula Variance Direct materials cost variance = (AC - SC) × AQ = $7,200 F Direct labor cost variance = (AC…
Sheridan Inc. manufactures basketballs for the Women's National Basketball Association (WNBA). For the first 6 months of 2022, the company reported the following operating results while operating at of plant capacity and producing 119, 400 units. Fixed costs for the period were cost of goods sold, and selling and administrative expenses. In July, normally a slack manufacturing month, Sheridan receives a special order for 10, 000 basketballs at each from the Greek Basketball Association (GBA). Acceptance of the order would increase variable selling and administrative expenses per unit because of shipping costs but would not increase fixed costs and expenses. (a) (a) Prepare an incremental analysis for the special order. (Round all per unit computations to 2 decimal places, e g. 15.25. Enter negative amounts using either a negative sign preceding the number e. g. or parentheses e. g. (45).) (b) Should Sheridan Inc, accept the special order?
Road Warrior Corporation began operations early in the current year, building luxury motor homes. During the year, the company started and completed 50 motor homes at a cost of $60,000 per unit. Of these, 48 were sold for $95,000 each and two remain in finished goods inventory. In addition, the company had six partially completed units in its factory at year-end. Total costs for the year (summarized alphabetically) were as follows: $ 737,000 900,000 Direct materials used Direct labor General and administrative 500,000 expenses Income tax expense Manufacturing overhead Selling expenses 100,000 1,520,000 500,000 Instructions a. Compute the total manufacturing costs charged to work in process for the current year: Total manufacturing costs b. Compute the cost of finished goods manufactured for the current year: Cost of finished goods manufactured
Linwood Company recently began production of a new navigation device, which required a capital investment of $660,000. Linwood is currently considering establishing a selling price for this new device that will ensure a 25% return on the capital investment. The engineering and the sales department compiled the following estimates for producing and selling 77,000 devices: Per Unit Total (77,000 units) Direct Materials $12 Direct Labor $26 Variable Manufacturing Overhead $14 Selling and Administrative Expenses $17 Fixed Manufacturing Overhead $223,000 General and Administrative Expenses $73,000 Required:Do not enter dollar signs or commas in the input boxes.Round all answers to 2 decimal places.a) Using the cost plus pricing method, calculate the markup percentage.Full Cost: $Answer Markup Percentage: Answer %b) The company has a cost plus pricing policy that uses the absorption (full) cost as the cost base and the markup percentage calculated in part a).…
Ceder Company has compiled the following data for the upcoming year: Sales are expected to be 16,000 units at $52 each. Each unit requires 4 pounds of direct materials at $2.40 per pound. Each unit requires 2.1 hours of direct labor at $13 per hour. Manufacturing overhead is $4.90 per unit. Beginning direct materials inventory is $5,400. Ending direct materials inventory is $6,950. Selling and administrative costs totaled $138,720. Determine Ceder's budgeted cost of goods sold. Complete Ceder's budgeted income statement.
Linwood Company recently began production of a new navigation device, which required a capital investment of $660,000. Linwood is currently considering establishing a selling price for this new device that will ensure a 25% return on the capital investment. The engineering and the sales department compiled the following estimates for producing and selling 77,000 devices: Per Unit Total (77,000 units) Direct Materials $12 Direct Labor $26 Variable Manufacturing Overhead $14 Selling and Administrative Expenses $17 Fixed Manufacturing Overhead $223,000 General and Administrative Expenses $73,000 Required:Do not enter dollar signs or commas in the input boxes.Round all answers to 2 decimal places.a) Using the cost plus pricing method, calculate the markup percentage.Full Cost: $AnswerMarkup Percentage: Answer%b) The company has a cost plus pricing policy that uses the absorption (full) cost as the cost base and the markup percentage calculated in part a).…
Enjoy It Industries manufactures custom-designed playground equipment for schools and city parks. Enjoy It expected to incur $750,600 of manufacturing overhead cost, 41,700 of direct labor hours, and $1,000,800 of direct labor cost during the year (the cost of direct labor required $14,200 of direct materials. The City of Adams has contracted to purchase the playground equipment at a price of 27% over manufacturing cost. $24 per hour). The company allocates manufacturing overhead on the basis of direct labor hours. During July, Enjoy It completed Job 309. The job used 165 direct labor hours and Read the equirement Requirement 1. Calculate the manufacturing cost of Job 309. First identify the formula, then calculate the predetermined overhead rate. = Predetermined overhead rate per hour
Al Sur Manufacturing LLC has furnished the following information for the month of January 2020: Materials used is RO 10,000, Direct labor is RO 20,000, Labor hours worked is 3,000, Hours of machine operation is 2000 and Overhead cost is RO 5000.The department during the period has executed an order. The relevant information is as follows: Materials used is RO 5,000, Direct labor is RO 3000, Labor hours worked is 500 and Hours of machines operation is 300. Calculate the overhead chargeable to the job based on percentage of direct labor cost. a. RO 750 b. RO 835 c. RO 2,500 d. RO 900
Steel Metals Ltd manufactures and sells iron rods that is used in the construction of roads. The product is manufactured and sold in 20' long rods. The product is generally produced and sold to match customer demand, and there is not a significant amount of finished goods inventory at any point in time. Summary information for 2020 is as follows: Sales were $20,000,000, consisting of 5,000,000 rods. Total variable costs were $11,000,000. Total fixed costs were $8,000,000. Net income was $1,000,000. The general economic conditions appear to be deteriorating heading into 2021, and there is some concern about a reduction in sales volume. The following questions should each be answered independent of one another. Required: a) What is the company's break-even point in 20' long rods? b) Can the company sustain a 30% reduction in total volume, and remain profitable? c) The company's sole shareholder, Pant Sharma, generally lives off dividends paid by the business. The business typically…
Modern Lighting Inc. manufactures lighting fixtures, using lean manufacturing methods. Style Omega has a materials cost per unit of $24. The budgeted conversion cost for the year is $148,200 for 2,600 production hours. A unit of Style Omega requires 10 minutes of cell production time. The following transactions took place during June: Materials were acquired to assemble 930 Style Omega units for June. Conversion costs were applied to 930 Style Omega units of production. 860 units of Style Omega were completed in June. 810 units of Style Omega were sold in June for $70 per unit. Question Content Area a. Determine the budgeted cell conversion cost per hour. If required, round to the nearest cent.fill in the blank 1 of 1$ per hour b. Determine the budgeted cell conversion cost per unit. If required, round to the nearest cent.fill in the blank 1 of 1$ per unit Feedback Area Feedback Question Content Area c. Journalize the summary transactions (1)–(4) for…