Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: Standard Quantity Standard Price (Rate) Standard Unit Cost Direct materials (plastic) 12 sq ft. $ 0.76 per sq. ft. $ 9.12 Direct labor 1.5 hr. $ 11.40 per hr. 17.10 Variable manufacturing overhead (based on direct labor hours) 1.5 hr. $ 1.20 per hr. 1.80 Fixed manufacturing overhead ($972,000 ÷ 1,080,000 units) 0.90 Parker Plastic had the following actual results for the past year: Number of units produced and sold 1,180,000 Number of square feet of plastic used 13,570,000 Cost of plastic purchased and used $ 10,041,800 Number of labor hours worked 939,000 Direct labor cost $ 9,671,700 Variable overhead cost $ 1,220,700 Fixed overhead cost $ 964,000 Required: 1., 2., 3., & 4. Prepare the journal entry to record Parker Plastic's direct materials, direct labor, variable overhead, fixed overhead costs and related variances. Assume the company purchases raw materials as needed and does not maintain any ending inventories. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) I am not sure if GJ is correct, please review it. Can you please help with debit and credit and show work. 1. Record entry for direct materials costs and variances. 2. Record entry for direct labor costs and variances. 3. Record the entry for variable overhead costs and variances. 4. Record the entry for fixed overhead costs and variances. Transaction General Journal Debit Credit 1 Cost of Goods Sold Direct Materials Price Variance Direct Materials Quantity Variance Cash or Accounts Payable 2 Cost of Goods Sold Direct Labor Rate Variance Direct Labor Efficiency Variance Cash or Accounts Payable 3 Cost of Goods Sold Variable Overhead Rate Variance Variable Overhead Efficiency Variance Cash or Accounts Payable 4 Cost of Goods Sold Fixed Overhead Spending Variance Fixed Overhead Volume Variance Cash or Accounts Payable

Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: Standard Quantity Standard Price (Rate) Standard Unit Cost Direct materials (plastic) 12 sq ft. $ 0.76 per sq. ft. $ 9.12 Direct labor 1.5 hr. $ 11.40 per hr. 17.10 Variable manufacturing overhead (based on direct labor hours) 1.5 hr. $ 1.20 per hr. 1.80 Fixed manufacturing overhead ($972,000 ÷ 1,080,000 units) 0.90 Parker Plastic had the following actual results for the past year: Number of units produced and sold 1,180,000 Number of square feet of plastic used 13,570,000 Cost of plastic purchased and used $ 10,041,800 Number of labor hours worked 939,000 Direct labor cost $ 9,671,700 Variable overhead cost $ 1,220,700 Fixed overhead cost $ 964,000 Required: 1., 2., 3., & 4. Prepare the journal entry to record Parker Plastic's direct materials, direct labor, variable overhead, fixed overhead costs and related variances. Assume the company purchases raw materials as needed and does not maintain any ending inventories. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) I am not sure if GJ is correct, please review it. Can you please help with debit and credit and show work. 1. Record entry for direct materials costs and variances. 2. Record entry for direct labor costs and variances. 3. Record the entry for variable overhead costs and variances. 4. Record the entry for fixed overhead costs and variances. Transaction General Journal Debit Credit 1 Cost of Goods Sold Direct Materials Price Variance Direct Materials Quantity Variance Cash or Accounts Payable 2 Cost of Goods Sold Direct Labor Rate Variance Direct Labor Efficiency Variance Cash or Accounts Payable 3 Cost of Goods Sold Variable Overhead Rate Variance Variable Overhead Efficiency Variance Cash or Accounts Payable 4 Cost of Goods Sold Fixed Overhead Spending Variance Fixed Overhead Volume Variance Cash or Accounts Payable

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows:

	Standard Quantity	Standard Price (Rate)	Standard Unit Cost
Direct materials (plastic)	12	sq ft.	$	0.76	per sq. ft.	$	9.12
Direct labor	1.5	hr.	$	11.40	per hr.		17.10
Variable manufacturing overhead (based on direct labor hours)	1.5	hr.	$	1.20	per hr.		1.80
Fixed manufacturing overhead ($972,000 ÷ 1,080,000 units)							0.90

Parker Plastic had the following actual results for the past year:


Number of units produced and sold		1,180,000
Number of square feet of plastic used		13,570,000
Cost of plastic purchased and used	$	10,041,800
Number of labor hours worked		939,000
Direct labor cost	$	9,671,700
Variable overhead cost	$	1,220,700
Fixed overhead cost	$	964,000

Required:
1., 2., 3., & 4. Prepare the journal entry to record Parker Plastic's direct materials, direct labor, variable overhead, fixed overhead costs and related variances. Assume the company purchases raw materials as needed and does not maintain any ending inventories. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

I am not sure if GJ is correct, please review it. Can you please help with debit and credit and show work.

1. Record entry for direct materials costs and variances.

2. Record entry for direct labor costs and variances.

3. Record the entry for variable overhead costs and variances.

4. Record the entry for fixed overhead costs and variances.

Transaction	General Journal	Debit	Credit
1	Cost of Goods Sold
	Direct Materials Price Variance
	Direct Materials Quantity Variance
	Cash or Accounts Payable
2	Cost of Goods Sold
	Direct Labor Rate Variance
	Direct Labor Efficiency Variance
	Cash or Accounts Payable
3	Cost of Goods Sold
	Variable Overhead Rate Variance
	Variable Overhead Efficiency Variance
	Cash or Accounts Payable
4	Cost of Goods Sold
	Fixed Overhead Spending Variance
	Fixed Overhead Volume Variance
	Cash or Accounts Payable

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 4 steps with 4 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.