Required information [The following information applies to the questions displayed below.] Alvarez Company for the current period shows a $22,000 favorable volume variance and a $59.000 unfavorable controllable variance. Standard overhead applied for the period is $233,000. Alvarez records standard costs in its accounts. Prepare the journal entry to charge overhead costs to the Work in Process Inventory account and to record any variances. View transaction tist Journal entry worksheet A Record overhead applied to production and overhead variances. Note: Enter debits before credits, Transaction General Journal Debit Credit 1 Record entry Clear entry View general journal

Required information [The following information applies to the questions displayed below.] Alvarez Company for the current period shows a $22,000 favorable volume variance and a $59.000 unfavorable controllable variance. Standard overhead applied for the period is $233,000. Alvarez records standard costs in its accounts. Prepare the journal entry to charge overhead costs to the Work in Process Inventory account and to record any variances. View transaction tist Journal entry worksheet A Record overhead applied to production and overhead variances. Note: Enter debits before credits, Transaction General Journal Debit Credit 1 Record entry Clear entry View general journal

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Description: Required information[The following information applies to the questions dispiayed below]Alvarez Company for the current period shows a $22,000 favorable volume variance and a $59.000 unfavorablecontrollable variance. Standard overhead applied for th

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter9: Standard Costing: A Functional-based Control Approach

Section: Chapter Questions

Problem 5CE: Yohan Company has the following balances in its direct materials and direct labor variance accounts...

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Yohan Company has the following balances in its direct materials and direct labor variance accounts at year-end: Unadjusted Cost of Goods Sold equals 1,500,000, unadjusted Work in Process equals 236,000, and unadjusted Finished Goods equals 180,000. Required: 1. Assume that the ending balances in the variance accounts are immaterial and prepare the journal entries to close them to Cost of Goods Sold. What is the adjusted balance in Cost of Goods Sold after closing out the variances? 2. What if any ending balance in a variance account that exceeds 10,000 is considered material? Close the immaterial variance accounts to Cost of Goods Sold and prorate the material variances among Cost of Goods Sold, Work in Process, and Finished Goods on the basis of prime costs in these accounts. The prime cost in Cost of Goods Sold is 1,050,000, the prime cost in Work in Process is 165,200, and the prime cost in Finished Goods is 126,000. What are the adjusted balances in Work in Process, Finished Goods, and Cost of Goods Sold after closing out all variances? (Round ratios to four significant digits. Round journal entries to the nearest dollar.)
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?
Using variance analysis and interpretation Last year, Endicott 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 Endicotts trial balance?
For the current period, a company shows a $3,550 unfavorable controllable variance, a $1,950 favorable volume variance, and $210,000 of standard overhead applied. The company records standard costs in its accounts. Prepare the entry to record overhead applied to production and overhead variances. View transaction list Journal entry worksheet < A Record overhead applied to production and overhead variances. Note: Enter debits before credits Transaction 1 Record entry General Journal Clear entry Debit Credit View general journal
Recording Standards in Accounts Cioffi Manufacturing Company incorporates standards in its accounts and identifies variances at the time the manufacturing costs are incurred. Journalize the entries to record the following transactions: a. Purchased 2,450 units of copper tubing on account at $52.00 per unit. The standard price is $48.50 per unit. If an amount box does not require an entry, leave it blank. a. Materials ? ? Direct Materials Price Variance ? ? Accounts Payable ? ? Feedback Debit (unfavorable) or credit (favorable) the direct materials price variance. Debit (unfavorable) or credit (favorable) the direct materials quantity variance. b. Used 1,900 units of copper tubing in the process of manufacturing 200 air conditioners. Ten units of copper tubing are required, at standard, to produce one air conditioner. If an amount box does not require an entry, leave it blank. b. Work in Process ? ? Direct…
Required: (a) Compute, BuiltbyHands Stores predetermined manufacturing overhead rate for 20X8. (b) State the journal entries necessary to record the above transactions in the general journal. Assume that, BuiltbyHands Stores uses the perpetual inventory system. (c) Post the manufacturing overhead transactions to the Manufacturing Overhead T-account and state the Balance on the account before performing end of period closing entries. Show the journal entries Necessary to dispose of the variance. (d) What is the balance in the Cost of Goods Sold account after the adjustment? (e) Compute, BuiltbyHands Stores‘gross profit earned on the jobs completed. (f) Open T-accounts for Materials Inventory, Work in Process Inventory and Finished Goods Inventory. Post the appropriate entries to these accounts & determine the ending account balances.
Required information Use the following information for the Quick Study below. (Static) [The following information applies to the questions displayed below.] Alvarez Company for the current period shows a $20,000 favorable volume variance and a $60,400 unfavorable controllable variance. Standard overhead applied for the period is $225,000. QS 21-18A (Static) Preparing overhead entries LO P6 Alvarez records standard costs in its accounts. Prepare the journal entry to charge overhead costs to the Work in Process Inventory account and to record any variances View transaction list Journal entry worksheet Record overhead applied to production and overhead variances..
Hayesville Company uses a standard cost system and reports the following information for 2024: (Click the icon to view the information.) Requirements Begin by journalizing the purchase of direct materials on account, including the related variance. (Prepare a single com Date Accounts and Explanation Print G Debit Done 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.) Credit Hayesville Company reported the following variances:…
Situation Fenimore Manufacturing Company uses the average cost method. It has followed a policy of expensing all its manufacturing cost variances. It is considering a change in its policy that will involve allocating them between cost of goods sold and inventory. Fenimore’s president has asked you which of these alternative policies is consistent with GAAP. Directions Research the related generally accepted accounting principles and prepare a short memo to the president. Cite your references and applicable paragraph numbers.
Using the following data from the records of Starts Inc. for November of the current year, prepare an income statement (through operating income) that includes variances for presentation to management: Administrative expenses $ 69,000 Cost of goods sold (at standard) 200,000 Direct materials quantity variance—favorable 4,000 Direct materials price variance—unfavorable 3,200 Direct labor time variance—unfavorable 1,600 Direct labor rate variance—favorable 1,500 Factory overhead volume variance—unfavorable 2,000 Factory overhead controllable variance—favorable 2,500 Sales 750,000 Selling expenses 245,000
Required information [The following information applies to the questions displayed below.] Alvarez Company for the current period shows a $22,000 favorable volume variance and a $59,000 unfavorable controllable variance. Standard overhead applied for the period is $233,000. (a) What is the actual total overhead cost incurred for the period? (b) What is the total overhead variance and is it favorable of unfavorable? a. Actual total overhead b. Total overhead variance
[The following information applies to the questions displayed below.] Alvarez Company for the current period shows a $30,000 favorable volume variance and a $55,500 unfavorable controllable variance. Standard overhead applied for the period is $222,000. Alvarez records standard costs in its accounts. Prepare the journal entry to charge overhead costs to the Work in Process Inventory account and to record any variances. Journal entry worksheet A Record overhead applied to production and overhead variances. Note: Enter debits before credits. Transaction 1 Record entry General Journal Clear entry Debit Credit View general journal