Patel and Sons Incorporated uses a standard cost system to apply factory overhead costs to units produced. Practical capacity for the plant is defined as 50,400 machine hours per year, which represents 25,200 units of output. Annual budgeted fixed factory overhead costs are $252,000 and the budgeted variable factory overhead cost rate is $2.10 per unit. Factory overhead costs are applied on the basis of standard machine hours allowed for units produced. Budgeted and actual output for the year was 18,600 units, which took 39,400 machine hours. Actual fixed factory overhead costs for the year amounted to $247,200 while the actual variable overhead cost per unit was $2.00. Brief Exercise 15-23 (Algo) Provide an appropriate end-of-year closing entry.... [LO 15-4] Based on the information provided above, provide an appropriate end-of-year closing entry for each of the following two independent situations: Required: (a) The net factory overhead cost variance is closed entirely to Cost of Goods Sold (CGS). (b) The net factory overhead variance is allocated among WIP Inventory. Finished Goods Inventory, and CGS using the following percentages: 30%, 20%, and 50%, respectively. Note: Do not round intermediate calculations. Round your final answers to nearest whole dollar amount. If no entry is required for a transaction or event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet 1 2 Record the net variance closed to cost of goods sold. Note: Enter debits before credits. Transaction a General Journal Debit Credit Record entry Clear entry View general journal >
Patel and Sons Incorporated uses a standard cost system to apply factory overhead costs to units produced. Practical capacity for the plant is defined as 50,400 machine hours per year, which represents 25,200 units of output. Annual budgeted fixed factory overhead costs are $252,000 and the budgeted variable factory overhead cost rate is $2.10 per unit. Factory overhead costs are applied on the basis of standard machine hours allowed for units produced. Budgeted and actual output for the year was 18,600 units, which took 39,400 machine hours. Actual fixed factory overhead costs for the year amounted to $247,200 while the actual variable overhead cost per unit was $2.00. Brief Exercise 15-23 (Algo) Provide an appropriate end-of-year closing entry.... [LO 15-4] Based on the information provided above, provide an appropriate end-of-year closing entry for each of the following two independent situations: Required: (a) The net factory overhead cost variance is closed entirely to Cost of Goods Sold (CGS). (b) The net factory overhead variance is allocated among WIP Inventory. Finished Goods Inventory, and CGS using the following percentages: 30%, 20%, and 50%, respectively. Note: Do not round intermediate calculations. Round your final answers to nearest whole dollar amount. If no entry is required for a transaction or event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet 1 2 Record the net variance closed to cost of goods sold. Note: Enter debits before credits. Transaction a General Journal Debit Credit Record entry Clear entry View general journal >
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter9: Standard Costing: A Functional-based Control Approach
Section: Chapter Questions
Problem 33P: Business Specialty, Inc., manufactures two staplers: small and regular. The standard quantities of...
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![Patel and Sons Incorporated uses a standard cost system to apply factory overhead costs to units produced. Practical
capacity for the plant is defined as 50,400 machine hours per year, which represents 25,200 units of output. Annual
budgeted fixed factory overhead costs are $252,000 and the budgeted variable factory overhead cost rate is $2.10 per
unit. Factory overhead costs are applied on the basis of standard machine hours allowed for units produced. Budgeted
and actual output for the year was 18,600 units, which took 39,400 machine hours. Actual fixed factory overhead costs for
the year amounted to $247,200 while the actual variable overhead cost per unit was $2.00.
Brief Exercise 15-23 (Algo) Provide an appropriate end-of-year closing entry.... [LO 15-4]
Based on the information provided above, provide an appropriate end-of-year closing entry for each of the following two independent
situations:
Required:
(a) The net factory overhead cost variance is closed entirely to Cost of Goods Sold (CGS).
(b) The net factory overhead variance is allocated among WIP Inventory. Finished Goods Inventory, and CGS using the following
percentages: 30%, 20%, and 50%, respectively.
Note: Do not round intermediate calculations. Round your final answers to nearest whole dollar amount. If no entry is required for
a transaction or event, select "No journal entry required" in the first account field.
View transaction list
Journal entry worksheet
1
2
Record the net variance closed to cost of goods sold.
Note: Enter debits before credits.
Transaction
a
General Journal
Debit
Credit
Record entry
Clear entry
View general journal
>](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0898abb8-8048-48c5-b5d3-9a078254f24f%2Fa73adb16-1287-4fd2-8cf2-b42502ea5916%2F6ouz46v_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Patel and Sons Incorporated uses a standard cost system to apply factory overhead costs to units produced. Practical
capacity for the plant is defined as 50,400 machine hours per year, which represents 25,200 units of output. Annual
budgeted fixed factory overhead costs are $252,000 and the budgeted variable factory overhead cost rate is $2.10 per
unit. Factory overhead costs are applied on the basis of standard machine hours allowed for units produced. Budgeted
and actual output for the year was 18,600 units, which took 39,400 machine hours. Actual fixed factory overhead costs for
the year amounted to $247,200 while the actual variable overhead cost per unit was $2.00.
Brief Exercise 15-23 (Algo) Provide an appropriate end-of-year closing entry.... [LO 15-4]
Based on the information provided above, provide an appropriate end-of-year closing entry for each of the following two independent
situations:
Required:
(a) The net factory overhead cost variance is closed entirely to Cost of Goods Sold (CGS).
(b) The net factory overhead variance is allocated among WIP Inventory. Finished Goods Inventory, and CGS using the following
percentages: 30%, 20%, and 50%, respectively.
Note: Do not round intermediate calculations. Round your final answers to nearest whole dollar amount. If no entry is required for
a transaction or event, select "No journal entry required" in the first account field.
View transaction list
Journal entry worksheet
1
2
Record the net variance closed to cost of goods sold.
Note: Enter debits before credits.
Transaction
a
General Journal
Debit
Credit
Record entry
Clear entry
View general journal
>
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