Rand Company produces dry fertilizer. At the beginning of the year, Rand had the following standard cost sheet: Direct materials (8 lbs. @ $1.25) $10.00 Direct labor (0.15 hr. @ $18.00) 2.70 Fixed overhead (0.20 hr. @ $3.00) 0.60 Variable overhead (0.20 hr. @ $1.70) 0.34 Standard cost per unit $13.64 Overhead rates are computed using practical volume, which is 49,000 units. The actual results for the year are as follows: Units produced: 53,000 Direct materials purchased: 408,000 pounds at $1.32 per pound Direct materials used: 406,800 pounds Direct labor: 10,500 hours at $17.95 per hour Fixed overhead: $36,570 Variable overhead: $18,000 MPV=28,560 UNFAV MUV=21,500 FAV LRV=525 FAV LEV=45,900 UNFAV FIXED SPENDING VARIANCE= 7,170 UNFAV FIXED VOLUME VARIANCE= 2,400 FAV VARIABLE SPENDING= 150 UNFAV VARIABLE EFFICIENCY= 4,335 UNFAV Prepare journal entries for the following: The purchase of direct materials The issuance of direct materials to production (Work in Process) The addition of direct labor to Work in Process The addition of overhead to Work in Process The incurrence of actual overhead costs Prepare journal entries for the closing out of variances to Cost of Goods Sold. Post amounts from highest to lowest. If an amount box does not require an entry, leave it blank. First, close direct materials and direct labor variances: Second, recognize the overhead variances: Post amounts from highest to lowest. If an amount box does not require an entry, leave it blank Second, recognize the overhead variances: Post amounts from highest to lowest. If an amount box does not require an entry, leave it blank *Please help me i need this problem before midnight today*
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.
Rand Company produces dry fertilizer. At the beginning of the year, Rand had the following
|
Direct materials (8 lbs. @ $1.25) |
$10.00 |
|
Direct labor (0.15 hr. @ $18.00) |
2.70 |
|
Fixed |
0.60 |
|
Variable overhead (0.20 hr. @ $1.70) |
0.34 |
|
Standard cost per unit |
$13.64 |
Overhead rates are computed using practical volume, which is 49,000 units. The actual results for the year are as follows:
- Units produced: 53,000
- Direct materials purchased: 408,000 pounds at $1.32 per pound
- Direct materials used: 406,800 pounds
- Direct labor: 10,500 hours at $17.95 per hour
- Fixed overhead: $36,570
- Variable overhead: $18,000
MPV=28,560 UNFAV
MUV=21,500 FAV
LRV=525 FAV
LEV=45,900 UNFAV
FIXED SPENDING VARIANCE= 7,170 UNFAV
FIXED VOLUME VARIANCE= 2,400 FAV
VARIABLE SPENDING= 150 UNFAV
VARIABLE EFFICIENCY= 4,335 UNFAV
- Prepare
journal entries for the following:
- The purchase of direct materials
- The issuance of direct materials to production (Work in Process)
- The addition of direct labor to Work in Process
- The addition of overhead to Work in Process
- The incurrence of actual overhead costs
- Prepare journal entries for the closing out of variances to Cost of Goods Sold. Post amounts from highest to lowest. If an amount box does not require an entry, leave it blank.
First, close direct materials and direct labor variances:
Second, recognize the overhead variances:
Post amounts from highest to lowest. If an amount box does not require an entry, leave it blank
Second, recognize the overhead variances:
Post amounts from highest to lowest. If an amount box does not require an entry, leave it blank
*Please help me i need this problem before midnight today*
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