Return to que LIhe tollowing intormation 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 varlable 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 15-23 (Static) Provide an appropriate end-of-year closing entry... [LO 15-4] Based on the information provided above, provide an appropriate end-of-year closing entry for each of the following two independe situations: (a) the net factory overhead cost variance is closed entirely to Cost of Goods Sold (CSG), and (b) the net factory overhead variance is allocated among WIP Inventory. Finished Goods Inventory, and CGS using the following percentages: 10%, 20%, and 70% respectively. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Return to que LIhe tollowing intormation 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 varlable 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 15-23 (Static) Provide an appropriate end-of-year closing entry... [LO 15-4] Based on the information provided above, provide an appropriate end-of-year closing entry for each of the following two independe situations: (a) the net factory overhead cost variance is closed entirely to Cost of Goods Sold (CSG), and (b) the net factory overhead variance is allocated among WIP Inventory. Finished Goods Inventory, and CGS using the following percentages: 10%, 20%, and 70% respectively. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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LIhe tollowing intormation 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 15-23 (Static) Provide an appropriate end-of-year closing entry.. [LO 15-4]
Based on the information provided above, provide an appropriate end-of-year closing entry for each of the following two independent
situations: (a) the net factory overhead cost variance is closed entirely to Cost of Goods Sold (CSG), and (b) the net factory overhead
variance is allocated among WIP Inventory. Finished Goods Inventory, and CGS using the following percentages: 10%. 20%, and 70%,
respectively. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
O Answer is not complete.
No
Transaction
General Journal
Debit
Credit
a
Cost of goods sold
43,000
Factory overhead
43,000
2
Work in process inventory
4,300 O
8.600 O
30,100 O
Finished goods inventory
Cost of goods sold
Factory overhead
43,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8f552e99-7d0b-4b02-82fb-0db8f94aa610%2F37f345bf-69cb-4fe3-afca-f600e787f123%2F4cr01qg_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Return to question
LIhe tollowing intormation 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 15-23 (Static) Provide an appropriate end-of-year closing entry.. [LO 15-4]
Based on the information provided above, provide an appropriate end-of-year closing entry for each of the following two independent
situations: (a) the net factory overhead cost variance is closed entirely to Cost of Goods Sold (CSG), and (b) the net factory overhead
variance is allocated among WIP Inventory. Finished Goods Inventory, and CGS using the following percentages: 10%. 20%, and 70%,
respectively. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
O Answer is not complete.
No
Transaction
General Journal
Debit
Credit
a
Cost of goods sold
43,000
Factory overhead
43,000
2
Work in process inventory
4,300 O
8.600 O
30,100 O
Finished goods inventory
Cost of goods sold
Factory overhead
43,000
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