Toneri Otsutsuki Corp. determines that the following variances arose in produciionduring March:VarianceMaterials purchase price.Materials quantityLabor efficiencyLabor rateAmountP2,400 favorable1,000 favorable500 favorable750unfavorableFactory overhead volumeFactory overhead controllable.1,700 favorable2,9 50unfavorableMaterials purchases totaled P90,000 at standard costs, while P77,000 in materials weretaken from inventory for use in production. Labor payroll totaled P144,000, and actualoverhead incurred was P256,000.Required: Prepare the journal entries to record the above variances, including therecording of the actual and applied factory overhead using a single factory overheadcontrol account.

Journla entry is part of book keeping .

Answered: Required: Prepare the joumal entries to…

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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The cost of materials used on a specific job is first captured on which source document? Select one: O a. Materials requisition form Ob. Process cost sheet Oc. Labor time ticket Od. Cost driver sheet
Which of the following activity bases would be appropriate to use for materials handling? A. Number of machine hours B. Number of material moves C. Number of production orders D. Kilowatt-hours used
Required information [The following information applies to the questions displayed below.] Alvarez Company for the current period shows a $28,000 favorable volume variance and a $69,000 unfavorable controllable variance. Standard overhead applied for the period is $228,000. a. What is the actual total overhead cost incurred for the period? b. What is the total overhead variance and is it favorable or unfavorable? a. Actual total overhead b. Total overhead variance S 269,000
Examine the flowchart below and determine any control threats. Discuss the control problems, possible dangers and any corrective procedures that would recommend
Which of the following statement is not correct? Select one: а. FIFO method consider the beginning cost in its calculation of total cost of beginning work in process. b. FIFO used when work perform on the manufactured units is based on an order received. Ос. FIFO method is preferable to be used to get in detail information about the cost. d. FIFO consider work performed on all units that go through the department to be uniform.
There are standard amounts of factory overhead. Explain the procedures to determine standard amounts of factory overhead at different levels of production.
Please help me to solve this problem
In the Excel, or spreadsheet, approach to recording financial transactions, the Manufacturing Overhead account is used to record two things-all actual overhead expenses and the amount of manufacturing overhead applied to production using the predetermined overhead rate. True or False True False
Determining the basis for applying manufacturing overhead costs involves OA. primarily the accumulation of direct labor hours since virtually all overhead costs are driven by direct labor hours. B. primarily the maintaining of accurate records of production volume since virtually all overhead costs are driven by the number of units proc OC. the determination of a measure of activity that is a causal factor in the incurrence of overhead cost. OD. actual rather than budgeted levels of activity. Reset Selection
How is activity-based cost allocation useful to management for control and evaluation of the performance of a department? List three points only and briefly discuss them. Why is it necessary for the cost accountant to determine the percentage of completion in the ending work in process inventory at the end of the period? Briefly explain.
Briefly describe various variances relating to factory overheads. How material, labor and overhead variances calculated and recorded?
Which of the following describes cost allocation? a. serves as the basis for recording materials used O b. process by which factory overhead is assigned to a cost object serves as the basis for recording direct labor on a job cost sheet O c. O d. completed when materials that have been ordered are received and inspected

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Required: Prepare the joumal entries to record the above variances, including the recording of the actual and applied factory overhead using a single factory overhead control account.