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.

Name: Parkeville Company manufactures a single product and started the year
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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

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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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.

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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
$180,000
132,000
200,000
126,000
10,000 F
Variable overhead efficiency variance
4, e00 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
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.
Complete this question by entering your answers in the tabs below.
Required A
Required B
Assume Parkeville writes off all variances to Cost of Goods Sold. Prepare the entries the company would make to record and close out
the varlances. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
View transaction list
Journal entry worksheet
A
B
D
E
>
Record the purchase of various variable overhead resources.
Note: Enter debits before credits.
Event
General Journal
Debit
Credit
Record entry
Clear entry
View general journal
Prey
1 of ?
Next >

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