Parkeville Company manufactures a single product and started the year with no inventories. Selected information about results for theperiod just ended include the following:Actual fixed manufacturing overheadActual variable manufacturing overheadApplied fixed manufacturing overhead.Applied variable manufacturing overheadProduction volume varianceVariable overhead efficiency varianceFive percent of this period's production has not been sold. There are never any work-in-process inventories.Required:a. Assume Parkeville writes off all variances to Cost of Goods Sold. Prepare the entries the company would make to record and closeout the variances.b. Assume Parkeville prorates all variances to the appropriate accounts. Prepare the entries the company would make to record andclose out the variances.Required A Required BComplete this question by entering your answers in the tabs below.View transaction listAssume Parkeville writes off all variances to Cost of Goods Sold. Prepare the entries the company would make to record and close outthe variances. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)Journal entry worksheet< A B C D E$180,000132,000200,000126,000Note: Enter debits before credits.Record the purchase of various variable overhead resources.Event110,000 F4,000 FRecord entryGeneral JournalClear entryRequired ADebitCreditView general journalRequired B > Parkeville Company manufactures a single product and started the year with no inventories. Selected information about results for theperiod just ended include the following:Actual fixed manufacturing overheadActual variable manufacturing overheadApplied fixed manufacturing overheadApplied variable manufacturing overheadProduction volume varianceVariable overhead efficiency varianceFive percent of this period's production has not been sold. There are never any work-in-process inventories.Required:a. Assume Parkeville writes off all variances to Cost of Goods Sold. Prepare the entries the company would make to record and closeout the variances.b. Assume Parkeville prorates all variances to the appropriate accounts. Prepare the entries the company would make to record andclose out the variances.Complete this question by entering your answers in the tabs below.Required A Required BAssume Parkeville prorates all variances to the appropriate accounts. Prepare the entries the company would make to record and closeout the variances. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.)View transaction listJournal entry worksheet< A B C D ERecord the purchase of various variable overhead resources.Note: Enter debits before credits.$180,000132,000200,000126,00010,000 F4,000 FEvent1Record entryGeneral JournalClear entry< Required ADebitCreditView general journalRequired B >

Name: Parkeville Company manufactures a single product and started the year
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: Parkeville Company manufactures a single product and started the year with no inventories. Selected information about results for theperiod just ended include the following:Actual fixed manufacturing overheadActual variable manufacturing overheadApp

Variances are the differences between the actual and budgeted costs incurred during production…

Business

Accounting

Parkeville Company manufactures a single product and started the year with no inventories. Selected information about results for the period just ended include the following: Actual fixed manufacturing overhead Actual variable manufacturing overhead Applied fixed manufacturing overhead Applied variable manufacturing overhead Production volume variance Variable overhead efficiency variance $180,000 132,000 200,000 126,000 10,000 F 4,000 F Five percent of this period's production has not been sold. There are never any work-in-process inventories. Required: a. Assume Parkeville writes off all variances to Cost of Goods Sold. Prepare the entries the company would make to record and close out the variances. b. Assume Parkeville prorates all variances to the appropriate accounts. Prepare the entries the company would make to record and close out the variances.

Parkeville Company manufactures a single product and started the year with no inventories. Selected information about results for the period just ended include the following: Actual fixed manufacturing overhead Actual variable manufacturing overhead Applied fixed manufacturing overhead Applied variable manufacturing overhead Production volume variance Variable overhead efficiency variance $180,000 132,000 200,000 126,000 10,000 F 4,000 F Five percent of this period's production has not been sold. There are never any work-in-process inventories. Required: a. Assume Parkeville writes off all variances to Cost of Goods Sold. Prepare the entries the company would make to record and close out the variances. b. Assume Parkeville prorates all variances to the appropriate accounts. Prepare the entries the company would make to record and close out the variances.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Parkway Company incurred $130,000 in material costs during July. Additionally, the 12,400 units in…

A: Process costing is used to record cost of various stages of production. Under process costing…

Q: What is the net operating income this year using the absorption costing method? Please prepare the…

A: 1. Calculate product cost per unit for absorption costing: Product cost per unit = Variable cost…

Q: Hayes Company operated at normal capacity during the current year, producing 50,500 units of its…

A: Break Even Point (BEP) :— It is the point of production where total cost is equal to total revenue.…

Q: In their efforts to plan for production, the Operations Planning Group at the Akon Manufacturing…

A: The following calculations are done for Akon Manufacturing Company.

Q: For years, Mattoon Components Company has used an actual plantwide overhead rate and based its…

A: Variable cost per unit=Total manufacturing overhead 2017-Total manufacturing overhead 2016Direct…

Q: Assume the following information for the first year of operations for a company that sells only one…

A: The net income is calculated as the excess of revenues over the total costs incurred. Under…

Q: Assume the following information for the first year of operations for a company that sells only one…

A: The supervariable costing assumes only direct materials to be the variable cost. Other costs…

Q: Krepps Corporation produces a single product. Last year, Krepps manufactured 26,160 units and sold…

A: Selling price per unit = $971,850 / 20,900 units = $46.50 Variable cost per unit = [($188,352 +…

Q: True or False. If 10,000 units that were 50% completed are in process at November 1, 90,000 units…

A: Beginning units percentage of completion in current period = 100%-50% Beginning units percentage of…

Q: Galaxy, Inc., a manufacturer of telescopes, began operations on June 1 of the current year. During…

A: Under the Variable costing method, only the variable direct material, direct labor and direct…

Q: Please

A: Step 1: Define Absorption costing:Absorption costing is the method used for computing the cost of…

Q: APL, Inc. began operations on January 1, 2016. The company does not generally carry Work in Process…

A: Income statement of a company is a report of the company which shows the net loss or profit for the…

Q: A company has provided the following data for its two most recent years of operation: Selling price…

A: Factory overhead, also known as manufacturing overhead or indirect manufacturing costs, refers to…

Q: Crane Company decided to analyze certain costs for June of the current year. Units started into…

A: Conversion cost refers to the cost incurred by the entity to convert the raw material into the…

Q: I want correct answer

A: To estimate the total fixed costs for Chesapeake Co. in August, we can apply the high-low cost…

Q: materials labor le manufacturing overhead manufacturing overhead le selling expenses selling…

A: An expense that doesn't change based on the volume of goods or services produced within a certain…

Q: A manufacturing firm has discontinued production of a certain unprofitable product line.…

A: Key factor - Whenever the resources are available in a limited quantity the production decision must…

Q: Krepps Corporation produces a single product. Last year, Krepps manufactured 28,000 units and sold…

A: Contribution Margin -The contribution Margin is calculated by deducting variable costs from the…

Q: Bracey Company manufactures and sells one product. The following information pertains to the…

A: If you have any clarifications (i.e., expand the explanation) or want different, expanded, or…

Q: Sheridan Manufacturing has recently tried to improve its analysis for its manufacturing process.…

A: Equivalent units means where the some goods remain incomplete at the end of process and we need to…

Q: Craft Company produces a single product. Last year, the company had a net operating income of…

A: Step 1: Introduction to the Net Operating Income under Variable Costing v/s Absorption CostingThe…

Q: Yellowstone Company began operations on January 1 to produce a single product. It used an absorption…

A: Break Even means the volume of production or sales where there is no profit or loss. In other words,…

Q: Wolsey Industries Inc. expects to maintain the same inventories at the end of 20Y8 as at the…

Q: At the beginning of the year, a company estimated that 20,000 direct labor-hours would be required…

A: The overhead is applied to the production on the basis of predetermined overhead rate. The…

Q: Sheridan Manufacturing has recently tried to improve its analysis for its manufacturing process.…

A: Equivalent units means where the some goods remain incomplete at the end of process and we need to…

Q: Baird Corporation expects to incur indirect overhead costs of $118,650 per month and direct…

A: The pre-determined overhead rate is calculated as the estimated overhead costs divided by the…

Concept explainers

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.

Topic Video

Question

Parkeville Company manufactures a single product and started the year with no inventories. Selected information about results for the
period just ended include the following:
Actual fixed manufacturing overhead
Actual variable manufacturing overhead
Applied fixed manufacturing overhead.
Applied variable manufacturing overhead
Production volume variance
Variable overhead efficiency variance
Five percent of this period's production has not been sold. There are never any work-in-process inventories.
Required:
a. Assume Parkeville writes off all variances to Cost of Goods Sold. Prepare the entries the company would make to record and close
out the variances.
b. Assume Parkeville prorates all variances to the appropriate accounts. Prepare the entries the company would make to record and
close out the variances.
Required A Required B
Complete this question by entering your answers in the tabs below.
View transaction list
Assume Parkeville writes off all variances to Cost of Goods Sold. Prepare the entries the company would make to record and close out
the variances. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Journal entry worksheet
< A B C D E
$180,000
132,000
200,000
126,000
Note: Enter debits before credits.
Record the purchase of various variable overhead resources.
Event
1
10,000 F
4,000 F
Record entry
General Journal
Clear entry
Required A
Debit
Credit
View general journal
Required B >

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Explanation :

VIEW

Step 2: Journal entries to record and close out the variances :

VIEW

Step 3: Journal entries to record and close out the variances :

VIEW

Solution

VIEW

Step by step

Solved in 4 steps

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.

Similar questions

Pyne Company produces a single product. The company has 60,000 units in its ending inventory. Pyne's variable production costs during the year were $10 per unit and fixed manufacturing overhead costs were applied at $25 per unit ( which was the same as last year). The company's net operating income is $135,000 higher under variable costing than it is under absorption costing; and the company uses FIFO and closes any over- or under-applied overhead directly to cost of goods sold. Given these facts, what was the number of units of product in beginning inventory?
Bacolod Company, which manufactures and sells a single product for P15.00, is operating at full capacity of 20,000 units per month. The following unit costs relate to the manufacture of this product: Manufacturing: Direct materials Direct labor Variable overhead Fixed overhead P 2.00 4.00 1.00 1.80 Selling and administrative: Variable Fixed 3.00 1.20 The company has 1,000 units left over from last year's production which have small defects and which will have to be sold at a reduced price as part of a clearance sale provided that it will be refurbished at a cost of P1.50 per unit and there will be a need to purchase a special tool costing P 2,000 which will have no other use other than the refurbishing. Also, 50% of variable selling and administrative costs would have to be incurred to sell the defective units. The sale of the left over might affect the company's regular sale which may decrease by 500 units. Another option that Bacolod has is to simply sell the 1,000 units at its scrap…
There are no units in process at the beginning of the period, 1,000 units in process at the end of the period that are 40% complete, and 5,000 units transferred out during the period. Based on this information, there were 4,600 equivalent units of production during the period. True or False?
I want the correct answer with help
Parkeville Company manufactures a single product and started the year with no inventories. Selected information about results for the period just ended include the following: Actual fixed manufacturing overhead $ 174,000 Actual variable manufacturing overhead 135,000 Applied fixed manufacturing overhead 200,000 Applied variable manufacturing overhead 132,000 Production volume variance 16,000 F Variable overhead efficiency variance 7,000 F Eight percent of this period's production has not been sold. There are never any work-in-process inventories. Required: a. Assume Parkeville writes off all variances to Cost of Goods Sold. Prepare the entries the company would make to record and close out the variances. b. Assume Parkeville prorates all variances to the appropriate accounts. Prepare the entries the company would make to record and close out the variances.
Concord Company has recently tried to improve its analysis for its manufacturing process. Units started into production equaled 7000 and ending work in process equaled 400 units. Concord had no beginning work in process inventory. Conversion costs are applied equally throughout production, and materials are applied at the beginning of the process. How much is the materials cost per unit if ending work in process was 20% complete and total materials costs equaled $16100? $2.44. $2.30. $11.50. $2.18.
None
Use this information for Timmer Corporation to answer the question that follows. Timmer Corporation just started business in January. There were no beginning inventories. During the year, it manufactured 11,700 units of product and sold 8,000 units. The selling price of each unit was $25. Variable manufacturing costs were $3 per unit, and variable selling and administrative costs were $4 per unit. Fixed manufacturing costs were $23,400 and fixed selling and administrative costs were $7,900. What would Timmer's income from operations be for the year using absorption costing? O a. $120,100 b. $128,000 c. $96,080 Od. $144,000
I NEED ONLY THE ANSWERS FOR 9.3 AND 9.4 QUESTION
Beech Company produces a single product. The company has 55,000 units in its beginning inventory. Beech's variable production costs during the year were $10 per unit and fixed manufacturing overhead costs were applied at $30 per unit (which was the same as last year). The company's net operating income is $114,000 lower under variable costing than it is under absorption costing; and the company uses FIFO and closes any over- or under-applied overhead directly to cost of goods sold. Given these facts, what was the number of units of product in ending inventory? _______ units