Requirement 1. Prepare journal entries dated June 30 to record: raw materials purchases, direct materials used, indirect materials use direct labor used, indirect labor used, other actual overhead costs, overhead applied
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
Requirement 1.
Prepare
raw materials purchases,
direct materials used,
indirect materials use direct labor used,
indirect labor used,
other actual
overhead applied
![Required information
[The following information applies to the questions displayed below.]
Pro-Weave manufactures stadium blankets by passing the products through a weaving department and then
department. The following information is available regarding its June inventories:
Raw materials inventory
Work in process inventory-Weaving
Work in process inventory-Sewing
Finished goods inventory
Raw materials purchases (on credit)
Other actual overhead cost (paid in cash)
Materials used
Direct-Weaving
Direct-Sewing
Indirect
Labor used
Beginning
Inventory
The following additional information describes the company's manufacturing activities for June:
Direct-Weaving
Direct-Sewing
Indirect
Overhead rates as a percent of direct labor
Weaving
Sewing
Sales (on credit)
$ 158,000
440,000
695,000
1,316,000
$ 680,000
210,000
$ 292,000
84,000
154,000
$ 1,275,000
410,000
1,700,000
160%
Ending Inventory
$ 209,000
510,000
995,000
1,216,000
$ 4,250,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F503bef97-0a89-4e34-8b8c-b76f4dabcdee%2F7d673510-3f9c-46a0-a1ed-5af2b2bc921a%2Fo5q1d2l_processed.jpeg&w=3840&q=75)
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
