Required information SB (Static) Patel and Sons ... [The following information applies to the questions displayed below.] Patel and Sons Incorporated uses a standard cost system to apply factory overhead costs to units produced. Practical capacity for the plant is defined as 50,000 machine hours per year, which represents 25,000 units of output. Annual budgeted fixed factory overhead costs are $250,000 and the budgeted variable factory overhead cost rate is $4 per unit. Factory overhead costs are applied on the basis of standard machine hours allowed for units produced. Budgeted and actual output for the year was 20,000 units, which took 41,000 machine hours. Actual fixed factory overhead costs for the year amounted to $245,000, while the actual variable overhead cost per unit was $3.90. Brief Exercise 15-19 (Static) Provide the appropriate journal entries... [LO 15-4] Based on the information provided above, provide the appropriate journal entries (a) to record the overhead cost variances for the period (thereby closing out the balance in the Factory Overhead account), and (b) to close the variance accounts to the Cost of Goods Sold (CGS) account at the end of the period. (If no entry is required for a transaction/event, select "No journal entry required" in the First account field.) View transaction list Journal entry worksheet 1 2 Record the factory overhead variances. Note: Enter debits before credits. Transaction a General Journal Debit Credit Record entry Clear entry View general journal
Required information SB (Static) Patel and Sons ... [The following information applies to the questions displayed below.] Patel and Sons Incorporated uses a standard cost system to apply factory overhead costs to units produced. Practical capacity for the plant is defined as 50,000 machine hours per year, which represents 25,000 units of output. Annual budgeted fixed factory overhead costs are $250,000 and the budgeted variable factory overhead cost rate is $4 per unit. Factory overhead costs are applied on the basis of standard machine hours allowed for units produced. Budgeted and actual output for the year was 20,000 units, which took 41,000 machine hours. Actual fixed factory overhead costs for the year amounted to $245,000, while the actual variable overhead cost per unit was $3.90. Brief Exercise 15-19 (Static) Provide the appropriate journal entries... [LO 15-4] Based on the information provided above, provide the appropriate journal entries (a) to record the overhead cost variances for the period (thereby closing out the balance in the Factory Overhead account), and (b) to close the variance accounts to the Cost of Goods Sold (CGS) account at the end of the period. (If no entry is required for a transaction/event, select "No journal entry required" in the First account field.) View transaction list Journal entry worksheet 1 2 Record the factory overhead variances. Note: Enter debits before credits. Transaction a General Journal Debit Credit Record entry Clear entry View general journal
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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![Required information
SB (Static) Patel and Sons ...
[The following information applies to the questions displayed below.]
Patel and Sons Incorporated uses a standard cost system to apply factory overhead costs to units produced. Practical
capacity for the plant is defined as 50,000 machine hours per year, which represents 25,000 units of output. Annual
budgeted fixed factory overhead costs are $250,000 and the budgeted variable factory overhead cost rate is $4 per unit.
Factory overhead costs are applied on the basis of standard machine hours allowed for units produced. Budgeted and
actual output for the year was 20,000 units, which took 41,000 machine hours. Actual fixed factory overhead costs for the
year amounted to $245,000, while the actual variable overhead cost per unit was $3.90.
Brief Exercise 15-19 (Static) Provide the appropriate journal entries... [LO 15-4]
Based on the information provided above, provide the appropriate journal entries (a) to record the overhead cost variances for the
period (thereby closing out the balance in the Factory Overhead account), and (b) to close the variance accounts to the Cost of Goods
Sold (CGS) account at the end of the period. (If no entry is required for a transaction/event, select "No journal entry required" in the
First account field.)
View transaction list
Journal entry worksheet
1
2
Record the factory overhead variances.
Note: Enter debits before credits.
Transaction
a
General Journal
Debit
Credit
Record entry
Clear entry
View general journal](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F44182117-fd00-4d31-905f-d8bacb498814%2F6b6ca295-cd0e-4c31-8a32-515ed243ed2d%2Faszdmlm_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
SB (Static) Patel and Sons ...
[The following information applies to the questions displayed below.]
Patel and Sons Incorporated uses a standard cost system to apply factory overhead costs to units produced. Practical
capacity for the plant is defined as 50,000 machine hours per year, which represents 25,000 units of output. Annual
budgeted fixed factory overhead costs are $250,000 and the budgeted variable factory overhead cost rate is $4 per unit.
Factory overhead costs are applied on the basis of standard machine hours allowed for units produced. Budgeted and
actual output for the year was 20,000 units, which took 41,000 machine hours. Actual fixed factory overhead costs for the
year amounted to $245,000, while the actual variable overhead cost per unit was $3.90.
Brief Exercise 15-19 (Static) Provide the appropriate journal entries... [LO 15-4]
Based on the information provided above, provide the appropriate journal entries (a) to record the overhead cost variances for the
period (thereby closing out the balance in the Factory Overhead account), and (b) to close the variance accounts to the Cost of Goods
Sold (CGS) account at the end of the period. (If no entry is required for a transaction/event, select "No journal entry required" in the
First account field.)
View transaction list
Journal entry worksheet
1
2
Record the factory overhead variances.
Note: Enter debits before credits.
Transaction
a
General Journal
Debit
Credit
Record entry
Clear entry
View general journal
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