Quality Company uses a standard cost system and reports the following information for 2024: 1(Click the icon to view the information.) Quality Company reported the following variances: 2(Click the icon to view the variances.) Quality produced 1,000 units of finished product in 2024. Read the requirements3. Begin by journalizing the purchase of direct materials on account, including the related variance. (Prepare a single compound journal entry.) Date Accounts and Explanation Debit Credit (1) (2) (3) (4) (5) Now, journalize the usage of direct materials, including the related variance. (Prepare a single compound journal entry.) Date Accounts and Explanation Debit Credit (6) (7) (8) (9) (10) Journalize the incurrance and assignment of direct labor costs, including the related variances. (Prepare a single compound journal entry.) Date Accounts and Explanation Debit Credit (11) (12) (13) (14) (15) Journalize the entry to show the actual manufacturing overhead costs incurred. Date Accounts and Explanation Debit Credit (16) (17) (18) (19) (20) Record the overhead allocated to Work-in-Process Inventory. Date Accounts and Explanation Debit Credit (21) (22) (23) (24) (25) Journalize the movement of all production from Work-in-Process Inventory. Date Accounts and Explanation Debit Credit (26) (27) (28) (29) (30) Record the entry to transfer the cost of sales at standard cost. Date Accounts and Explanation Debit Credit (31) (32) (33) (34) (35) Journalize the adjusting of the Manufacturing Overhead account. (Prepare a single compound journal entry.) Date Accounts and Explanation Debit Credit (36) (37) (38) (39) (40) (41) 1: Data Table Standards: 3 yards of cloth per unit at $1.15 per yard 2 direct labor hours per unit at $19.50 per hour Overhead allocated at $6.00 per direct labor hour Actual: 2,400 yards of cloth were purchased at $1.20 per yard Employees worked 1,200 hours and were paid $19.00 per hour Actual variable overhead was $2,200 Actual fixed overhead was $8,500 2: Data Table Direct materials cost variance $120 U Direct materials efficiency variance 690 F Direct labor cost variance 600 F Direct labor efficiency variance 15,600 F Variable overhead cost variance 1,600 U Variable overhead efficiency variance 1,600 F Fixed overhead cost variance 200 U Fixed overhead volume variance 1,500 F 3: 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.) (1) Accounts Payable Cost of Goods Sold Direct Labor Cost Variance Direct Labor Efficiency Variance Direct Materials Cost Variance Direct Materials Efficiency Variance Finished Goods Inventory Fixed Overhead Cost Variance Fixed Overhead Volume Variance Manufacturing Overhead Raw Materials Inventory Variable Overhead Cost Variance Variable Overhead Efficiency Variance Wages Payable Work-in-Process Inventory (2) Accounts Payable Cost of Goods Sold Direct Labor Cost Variance Direct Labor Efficiency Variance Direct Materials Cost Variance Direct Materials Efficiency Variance Finished Goods Inventory Fixed Overhead Cost Variance Fixed Overhead Volume Variance Manufacturing Overhead Raw Materials Inventory Variable Overhead Cost Variance Variable Overhead Efficiency Variance Wages Payable Work-in-Process Inventory (3) Accounts Payable Cost of Goods Sold Direct Labor Cost Variance Direct Labor Efficiency Variance Direct Materials Cost Variance Direct Materials Efficiency Variance Finished Goods Inventory Fixed Overhead Cost Variance Fixed Overhead Volume Variance Manufacturing Overhead Raw Materials Inventory Variable Overhead Cost Variance Variable Overhead Efficiency Variance Wages Payable Work-in-Process Inventory

Quality Company uses a standard cost system and reports the following information for 2024: 1(Click the icon to view the information.) Quality Company reported the following variances: 2(Click the icon to view the variances.) Quality produced 1,000 units of finished product in 2024. Read the requirements3. Begin by journalizing the purchase of direct materials on account, including the related variance. (Prepare a single compound journal entry.) Date Accounts and Explanation Debit Credit (1) (2) (3) (4) (5) Now, journalize the usage of direct materials, including the related variance. (Prepare a single compound journal entry.) Date Accounts and Explanation Debit Credit (6) (7) (8) (9) (10) Journalize the incurrance and assignment of direct labor costs, including the related variances. (Prepare a single compound journal entry.) Date Accounts and Explanation Debit Credit (11) (12) (13) (14) (15) Journalize the entry to show the actual manufacturing overhead costs incurred. Date Accounts and Explanation Debit Credit (16) (17) (18) (19) (20) Record the overhead allocated to Work-in-Process Inventory. Date Accounts and Explanation Debit Credit (21) (22) (23) (24) (25) Journalize the movement of all production from Work-in-Process Inventory. Date Accounts and Explanation Debit Credit (26) (27) (28) (29) (30) Record the entry to transfer the cost of sales at standard cost. Date Accounts and Explanation Debit Credit (31) (32) (33) (34) (35) Journalize the adjusting of the Manufacturing Overhead account. (Prepare a single compound journal entry.) Date Accounts and Explanation Debit Credit (36) (37) (38) (39) (40) (41) 1: Data Table Standards: 3 yards of cloth per unit at $1.15 per yard 2 direct labor hours per unit at $19.50 per hour Overhead allocated at $6.00 per direct labor hour Actual: 2,400 yards of cloth were purchased at $1.20 per yard Employees worked 1,200 hours and were paid $19.00 per hour Actual variable overhead was $2,200 Actual fixed overhead was $8,500 2: Data Table Direct materials cost variance $120 U Direct materials efficiency variance 690 F Direct labor cost variance 600 F Direct labor efficiency variance 15,600 F Variable overhead cost variance 1,600 U Variable overhead efficiency variance 1,600 F Fixed overhead cost variance 200 U Fixed overhead volume variance 1,500 F 3: 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.) (1) Accounts Payable Cost of Goods Sold Direct Labor Cost Variance Direct Labor Efficiency Variance Direct Materials Cost Variance Direct Materials Efficiency Variance Finished Goods Inventory Fixed Overhead Cost Variance Fixed Overhead Volume Variance Manufacturing Overhead Raw Materials Inventory Variable Overhead Cost Variance Variable Overhead Efficiency Variance Wages Payable Work-in-Process Inventory (2) Accounts Payable Cost of Goods Sold Direct Labor Cost Variance Direct Labor Efficiency Variance Direct Materials Cost Variance Direct Materials Efficiency Variance Finished Goods Inventory Fixed Overhead Cost Variance Fixed Overhead Volume Variance Manufacturing Overhead Raw Materials Inventory Variable Overhead Cost Variance Variable Overhead Efficiency Variance Wages Payable Work-in-Process Inventory (3) Accounts Payable Cost of Goods Sold Direct Labor Cost Variance Direct Labor Efficiency Variance Direct Materials Cost Variance Direct Materials Efficiency Variance Finished Goods Inventory Fixed Overhead Cost Variance Fixed Overhead Volume Variance Manufacturing Overhead Raw Materials Inventory Variable Overhead Cost Variance Variable Overhead Efficiency Variance Wages Payable Work-in-Process Inventory

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Quality

Company uses a standard cost system and reports the following information for

2024:

1(Click

the icon to view the information.)

Quality

Company reported the following variances:

2(Click

the icon to view the variances.)

Quality

produced

1,000

units of finished product in

2024.

Read the

requirements3.

Begin by journalizing the purchase of direct materials on account, including the related variance. (Prepare a single compound journal entry.)

Date	Accounts and Explanation	Debit	Credit
	(1)
			(2)
			(3)
			(4)
			(5)

Now, journalize the usage of direct materials, including the related variance. (Prepare a single compound journal entry.)

Date	Accounts and Explanation	Debit	Credit
	(6)
			(7)
			(8)
			(9)
			(10)

Journalize the incurrance and assignment of direct labor costs, including the related variances. (Prepare a single compound journal entry.)

Date	Accounts and Explanation	Debit	Credit
	(11)
			(12)
			(13)
			(14)
			(15)

Journalize the entry to show the actual manufacturing overhead costs incurred.

Date	Accounts and Explanation	Debit	Credit
	(16)
			(17)
			(18)
			(19)
			(20)

Record the overhead allocated to Work-in-Process Inventory.

Date	Accounts and Explanation	Debit	Credit
	(21)
			(22)
			(23)
			(24)
			(25)

Journalize the movement of all production from Work-in-Process Inventory.

Date	Accounts and Explanation	Debit	Credit
	(26)
			(27)
			(28)
			(29)
			(30)

Record the entry to transfer the cost of sales at standard cost.

Date	Accounts and Explanation	Debit	Credit
	(31)
			(32)
			(33)
			(34)
			(35)

Journalize the adjusting of the Manufacturing Overhead account. (Prepare a single compound journal entry.)

Date	Accounts and Explanation	Debit	Credit
	(36)
			(37)
			(38)
			(39)
			(40)
			(41)

1: Data Table

Standards:

3 yards of cloth per unit at $1.15 per yard

2 direct labor hours per unit at $19.50 per hour

Overhead allocated at $6.00 per direct labor hour

Actual:

2,400 yards of cloth were purchased at $1.20 per yard

Employees worked 1,200 hours and were paid $19.00 per hour

Actual variable overhead was $2,200

Actual fixed overhead was $8,500

2: Data Table

Direct materials cost variance	$120 U
Direct materials efficiency variance	690 F
Direct labor cost variance	600 F
Direct labor efficiency variance	15,600 F
Variable overhead cost variance	1,600 U
Variable overhead efficiency variance	1,600 F
Fixed overhead cost variance	200 U
Fixed overhead volume variance	1,500 F

3: 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.)

(1)

Accounts Payable

Cost of Goods Sold

Direct Labor Cost Variance

Direct Labor Efficiency Variance

Direct Materials Cost Variance

Direct Materials Efficiency Variance

Finished Goods Inventory

Fixed Overhead Cost Variance

Fixed Overhead Volume Variance

Manufacturing Overhead

Raw Materials Inventory

Variable Overhead Cost Variance

Variable Overhead Efficiency Variance

Wages Payable

Work-in-Process Inventory

(2)

Accounts Payable

Cost of Goods Sold

Direct Labor Cost Variance

Direct Labor Efficiency Variance

Direct Materials Cost Variance

Direct Materials Efficiency Variance

Finished Goods Inventory

Fixed Overhead Cost Variance

Fixed Overhead Volume Variance

Manufacturing Overhead

Raw Materials Inventory

Variable Overhead Cost Variance

Variable Overhead Efficiency Variance

Wages Payable

Work-in-Process Inventory

(3)

Accounts Payable

Cost of Goods Sold

Direct Labor Cost Variance

Direct Labor Efficiency Variance

Direct Materials Cost Variance

Direct Materials Efficiency Variance

Finished Goods Inventory

Fixed Overhead Cost Variance

Fixed Overhead Volume Variance

Manufacturing Overhead

Raw Materials Inventory

Variable Overhead Cost Variance

Variable Overhead Efficiency Variance

Wages Payable

Work-in-Process Inventory

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