Required:1. Compute the amount of Direct Materials Price Variance to be prorated to Finished Goods Inventory at December 31.2. Compute the total amount of direct materials cost in the Finished Goods Inventory at December 31, after all materials variances havebeen prorated.3. Compute the total amount of direct labor cost in the Finished Goods Inventory at December 31, after all variances have beenprorated.4. Compute the total Cost of Goods Sold (COGS) for the year ended December 31, after all variances have been prorated.(For all requirements, round your final answers to the nearest whole dollar amount.)1. Direct materials price variance2. Direct materials cost3. Direct labor cost4. Cost of goods sold$$$$14,9483,863136,7331,733,233 Butrico Manufacturing Corporation uses a standard cost system, records materials price variances when direct materials arepurchased, and prorates all variances at year-end. Variances associated with direct materials are prorated based on the balances ofdirect materials in the appropriate accounts, and variances associated with direct labor and manufacturing overhead are prorated toFinished Goods Inventory and to Cost of Goods Sold (COGS) on the basis of the relative direct labor cost in these accounts at year-end.The following information is for the year ended December 31:The company had no beginning inventories and no ending Work-in-Process (WIP) Inventory. It applies manufacturing overhead at 80%of standard direct labor cost.Finished goods inventory at 12/31:Direct materialsDirect laborApplied manufacturing overheadDirect materials inventory at 12/31Cost of goods sold for the year ended 12/31:Direct materialsDirect laborApplied manufacturing overheadDirect materials price variance (unfavorable)Direct materials usage variance (favorable)Direct labor rate variance (unfavorable)Direct labor efficiency variance (favorable)Actual manufacturing overhead incurred$ 89,610134,415107,53265,300$ 358,440761,685609,34810,30015,45020,6005,150710, 700

Name: Required:1. Compute the amount of Direct Materials Price Variance to
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Description: Required:1. Compute the amount of Direct Materials Price Variance to be prorated to Finished Goods Inventory at December 31.2. Compute the total amount of direct materials cost in the Finished Goods Inventory at December 31, after all materials vari

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Required: 1. Compute the amount of Direct Materials Price Variance to be prorated to Finished Goods Inventory at December 31. 2. Compute the total amount of direct materials cost in the Finished Goods Inventory at December 31, after all materials variances have been prorated. 3. Compute the total amount of direct labor cost in the Finished Goods Inventory at December 31, after all variances have been prorated. 4. Compute the total Cost of Goods Sold (COGS) for the year ended December 31, after all variances have been prorated. (For all requirements, round your final answers to the nearest whole dollar amount.) 1. Direct materials price variance 2. Direct materials cost 3. Direct labor cost 4. Cost of goods sold $ $ $ $ 14,948 3,863 136,733 1,733,233

Required: 1. Compute the amount of Direct Materials Price Variance to be prorated to Finished Goods Inventory at December 31. 2. Compute the total amount of direct materials cost in the Finished Goods Inventory at December 31, after all materials variances have been prorated. 3. Compute the total amount of direct labor cost in the Finished Goods Inventory at December 31, after all variances have been prorated. 4. Compute the total Cost of Goods Sold (COGS) for the year ended December 31, after all variances have been prorated. (For all requirements, round your final answers to the nearest whole dollar amount.) 1. Direct materials price variance 2. Direct materials cost 3. Direct labor cost 4. Cost of goods sold $ $ $ $ 14,948 3,863 136,733 1,733,233

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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Butrico Manufacturing Corporation uses a standard cost system, records materials price variances when direct materials are purchased, and prorates all variances at year-end. Variances associated with direct materials are prorated based on the balances of direct materials in the appropriate accounts, and variances associated with direct labor and manufacturing overhead are prorated to Finished Goods Inventory and to Cost of Goods Sold (COGS) on the basis of the relative direct labor cost in these accounts at year- end. The following information is for the year ended December 31: The company had no beginning inventories and no ending Work-in-Process (WIP) Inventory. It applies manufacturing overhead at 80% of standard direct labor cost. Finished goods inventory at 12/31: Direct materials Direct labor Applied manufacturing overhead Direct materials inventory at 12/31 Cost of goods sold for the year ended 12/31: Direct materials Direct labor Applied manufacturing overhead Direct materials…
Budget Performance Report Salisbury Bottle Company manufactures plastic two-liter bottles for the beverage industry. The cost standards per 100 two-liter bottles are as follows: Standard Cost per 100 Two-Liter Cost Category Direct labor Direct materials Factory overhead Total At the beginning of March, Salisbury's management planned to produce 500,000 bottles. The actual number of bottles produced for March was 525,000 bottles. The actual costs for March of the current year were as follows: Actual Cost for the Month Ended March 31 Cost Category Direct labor Direct materials Factory overhead Total Bottles $1.20 6.50 1.80 $9.50 Manufacturing costs: Direct labor Direct materials Factory overhead Total a. Prepare the March manufacturing standard cost budget (direct labor, direct materials, and factory overhead) for Salisbury, assuming planned production. Salisbury Bottle Company Manufacturing Cost Budget For the Month Ended March 31 $6,550 33,800 9,100 $49,450 $ Standard Cost at Planned…
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