Premium Company uses a standard cost system and reports the following information for 2024: (Click the icon to view the information.) Data table Standards: 3 yards of cloth per unit at $1.15 per yard 2 direct labor hours per unit at $12.50 per hour Overhead allocated at $5.00 per direct labor hour Actual: 2,400 yards of cloth were purchased at $1.20 per yard Employees worked 1,500 hours and were paid $12.00 per hour Actual variable overhead was $2,400 Actual fixed overhead was $5,800 Data table Direct materials cost variance Direct materials efficiency variance Direct labor cost variance Direct labor efficiency variance Variable overhead cost variance Variable overhead efficiency variance Fixed overhead cost variance Fixed overhead volume variance Premium Company reported the following variances: (Click the icon to view the variances.) Premium produced 1,000 units of finished product in 2024. Read the requirements. $120 U 690 F 750 F 6,250 F 1,200 U 1,200 F 100 U 1,900 F Requirements Record the journal entries for direct materials, direct labor, variable overhead, and fixed overhead, assuming all expenditures were on account and there were no beginning or ending balances in the inventory accounts (all materials purchased were used in production, and all goods produced were sold). Record the journal entries for the transfer to Finished Goods Inventory and Cost of Goods Sold (omit the journal entry for Sales Revenue). Record the journal entry to adjust the Manufacturing Overhead account. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Print Done
Premium Company uses a standard cost system and reports the following information for 2024: (Click the icon to view the information.) Data table Standards: 3 yards of cloth per unit at $1.15 per yard 2 direct labor hours per unit at $12.50 per hour Overhead allocated at $5.00 per direct labor hour Actual: 2,400 yards of cloth were purchased at $1.20 per yard Employees worked 1,500 hours and were paid $12.00 per hour Actual variable overhead was $2,400 Actual fixed overhead was $5,800 Data table Direct materials cost variance Direct materials efficiency variance Direct labor cost variance Direct labor efficiency variance Variable overhead cost variance Variable overhead efficiency variance Fixed overhead cost variance Fixed overhead volume variance Premium Company reported the following variances: (Click the icon to view the variances.) Premium produced 1,000 units of finished product in 2024. Read the requirements. $120 U 690 F 750 F 6,250 F 1,200 U 1,200 F 100 U 1,900 F Requirements Record the journal entries for direct materials, direct labor, variable overhead, and fixed overhead, assuming all expenditures were on account and there were no beginning or ending balances in the inventory accounts (all materials purchased were used in production, and all goods produced were sold). Record the journal entries for the transfer to Finished Goods Inventory and Cost of Goods Sold (omit the journal entry for Sales Revenue). Record the journal entry to adjust the Manufacturing Overhead account. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Print Done
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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Question
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Transcribed Image Text:Premium Company uses a standard cost system and reports the following information for 2024:
(Click the icon to view the information.)
Data table
Standards:
3 yards of cloth per unit at $1.15 per yard
2 direct labor hours per unit at $12.50 per hour
Overhead allocated at $5.00 per direct labor hour
Actual:
2,400 yards of cloth were purchased at $1.20 per yard
Employees worked 1,500 hours and were paid $12.00 per hour
Actual variable overhead was $2,400
Actual fixed overhead was $5,800
Data table
Direct materials cost variance
Direct materials efficiency variance
Direct labor cost variance
Direct labor ency variance
Variable overhead cost variance
Variable overhead efficiency variance
Fixed overhead cost variance
Fixed overhead volume variance
C
Premium Company reported the following variances:
(Click the icon to view the variances.)
Premium produced 1,000 units of finished product in 2024.
Read the requirements.
I
$120 U
690 F
750 F
6,250 F
1,200 U
1,200 F
100 U
1,900 F
Requirements
Record the journal entries for direct materials, direct labor, variable overhead, and
fixed overhead, assuming all expenditures were on account and there were no
beginning or ending balances in the inventory accounts (all materials purchased
were used in production, and all goods produced were sold). Record the journal
entries for the transfer to Finished Goods Inventory and Cost of Goods Sold (omit
the journal entry for Sales Revenue). Record the journal entry to adjust the
Manufacturing Overhead account. (Record debits first, then credits. Select the
explanation on the last line of the journal entry table.)
Print
Done
I
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