Raw Material Inventory $190,320 Work in Process Inventory 228,384 Finished Goods Inventory 342,576 Cost of Goods Sold 3,045,120 Material Price Variance 37,700 Material Quantity Variance $57,018 Labor Rate Variance 5,720 Labor Efficiency Variance. 22,828 Assume that, taken together, the variances are believed to be significant. Prepare the journal entries to close the variances at year-end. Note: Record any multiple debits or any multiple credits in alphabetical order by account name. Note: Do not round allocation percentages. Note: Round your final answers to the nearest whole dollar. Include any rounding differences to balance the t-account in Cost of Goods Sold. Account Cost of Goods Sold Finished Goods Inventory Raw Material Inventory Work in Process Inventory Material Price Variance To dispose of the material price variance Labor Rate Variance Material Quantity Variance Cost of Goods Sold Finished Goods Inventory Labor Efficiency Variance Work in Process Inventory ***** ****** To dispose of the remaining material and labor variances Debit Credit 30,160 ✔ 0 ✓ 3,393 ✔ 0 ✓ 1,885 0 2,262 0 0 ✓ 37,700 ✓ 5,720✔ 57,018 ✓ 0 ✓ 0 ✓ 0✓ 0 ✓ xx 0 ✓ 22,828✔ 0 ✓ 0 x

Raw Material Inventory $190,320 Work in Process Inventory 228,384 Finished Goods Inventory 342,576 Cost of Goods Sold 3,045,120 Material Price Variance 37,700 Material Quantity Variance $57,018 Labor Rate Variance 5,720 Labor Efficiency Variance. 22,828 Assume that, taken together, the variances are believed to be significant. Prepare the journal entries to close the variances at year-end. Note: Record any multiple debits or any multiple credits in alphabetical order by account name. Note: Do not round allocation percentages. Note: Round your final answers to the nearest whole dollar. Include any rounding differences to balance the t-account in Cost of Goods Sold. Account Cost of Goods Sold Finished Goods Inventory Raw Material Inventory Work in Process Inventory Material Price Variance To dispose of the material price variance Labor Rate Variance Material Quantity Variance Cost of Goods Sold Finished Goods Inventory Labor Efficiency Variance Work in Process Inventory * ** To dispose of the remaining material and labor variances Debit Credit 30,160 ✔ 0 ✓ 3,393 ✔ 0 ✓ 1,885 0 2,262 0 0 ✓ 37,700 ✓ 5,720✔ 57,018 ✓ 0 ✓ 0 ✓ 0✓ 0 ✓ xx 0 ✓ 22,828✔ 0 ✓ 0 x

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead

Section: Chapter Questions

Problem 12E: Using variance analysis and interpretation Last year, Endicott Corp. adopted a standard cost system....

See similar textbooks

Similar questions

Using variance analysis and interpretation Last year, Wrigley Corp. adopted a standard cost system. Labor standards were set on the basis of time studies and prevailing wage rates. Materials standards were determined from materials specifications and the prices then in effect. On June 30, the end of the current fiscal year, a partial trial balance revealed the following: Standards set at the beginning of the year have remained unchanged. All inventories are priced at standard cost. What conclusions can be drawn from each of the four variances shown in Wrigleys trial balance?
(Appendix) Calculating factory overhead: three variances Using the data given in E8-17, calculate the following overhead variances: a. Spending variance. b. Production-volume variance. c. Efficiency variance. d. Was the factory overhead under- or overapplied? By what amount? In all problems involving variances, use F and U to indicate favorable and unfavorable variances, respectively.
Anker Company had the data below for its most recent year, ended December 31: Required: Prepare a performance report that shows the variances on an item-by-item basis.
At the end of the current fiscal year, the trial balance of Big Apple Inc. revealed the following debit (unfavorable) balances: Flexible-Budget Variance — $2,000 Production–Volume Variance — $75,000 What conclusions can be drawn from these two variances?
Compute for the following and indicate if its FAVORABLE or UNFAVORABLE Format: 11,111 F or 11,111 U 1. Cost price variance = 2. Cost volume variance= 3. Total gross profit variance=
Revenue variances Rockport Industries Inc. gathered the following data for March: Sales price per unit Number of units of sales Total sales Planned $150 x 12,500 Actual $144 x 12,900 $1,875,000 $1,857,600 Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. a. Compute the revenue price variance. b. Compute the revenue volume variance. $ c. Compute the total revenue variance.
1. Summarize the variances that you computes in (1) above by showing the net overall favorable or unfavorable variances for the month. What impact did this figure have on the company's income statement? Show computations 2.Pick out the two most significant variances that you computed in (1) above. Explain tMs. Dunn possible causes of these variances.
a FBC (Pty) manufactures one product, Product X. You were given the following information for period 4. Product X has a standard material cost as follows: 10 kilograms of material Y at P10 per kg = P100 per unit of X. During period 4; 1, 000 units of X were manufactured, using 11, 700 kg of material which cost P98, 631. The standard labour cost of product X is as follows: 2 hours of grade Z labour at P10 per hour = P20 per unit of product X. During period 4; 1, 000 units of product X were made, and the labour cost of grade Z labour was P17, 825 for 2, 300 hours of work.
vnt.iob
Revenue variances Dickinsen Company gathered the following data for December: Sales price per unit Number of units of sales Total sales Planned Actual $5.80 $6.00 x 820,000 x 805,000 $4,756,000 $4,830,000 Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. a. Compute the revenue price variance. b. Compute the revenue volume variance. c. Compute the total revenue variance.
You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device. The president asked you to review the company's costing system and "do what you can to help us get better control of our manufacturing overhead costs." You find the company has never used a flexible budget, and you suggest preparing such a budget would be an excellent first step in overhead planning and control. After much effort and analysis, you estimated the following cost formulas and gathered the following actual cost data for March: Utilities Maintenance Supplies Indirect labor Depreciation Cost Formula $16,000+ $0.19 per machine-hour $38,500+ $1.30 per machine-hour $0.90 per machine-hour During March, the company worked 20,000 machine-hours and produced 14,000 units. The company originally planned to work 22,000 machine-hours during March. Required: 1. Calculate the activity variances for March. 2. Calculate the spending variances for March. $94,800+ $1.70 per…
DL variances; journal entries Calista & Lane, CPAs, set the following standard for its inventory audit of Triumph Co.: 350 hours at an average hourly rate of $250. The firm actually worked 330 hours during the inventory audit process. The total labor variance for the audit was $3,500 unfavorable. a. Compute the total actual payroll. $ 0 b. Compute the labor efficiency variance. Note: Do not use a negative sign with your answer. Labor efficiency variance $ 0 c. Compute the labor rate variance. Note: Do not use a negative sign with your answer. Labor rate variance $ 0 ÷ d. Prepare the entry to assign labor costs to inventory, record the labor variances, and accrue payroll costs. Note: Record any multiple debits or any multiple credits in alphabetical order by account name. Account Debit Credit ÷ 0 0 ÷ 0 0 ÷ 0 0 ÷ 0 0 To record labor variances