Rip Tide Company manufactures surfboards. Its standard cost information follows: Direct materials (fiberglass) Direct labor Standard Quantity 16.6 square feet 10.7 hours 10.7 hours Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($33,000 + 275 units) Rip Tide has the following actual results for the month of June: Number of units produced and sold Number of square feet of fiberglass purchased and used Cost of fiberglass used Number of labor hours worked. Direct labor cost Variable overhead cost Fixed overhead cost Standard Price (Rate)) $5.4 per square feet $13 per hour $5 per hour 170 5,300 $ 31,800 1,739 $ 23,650 $7,999 $ 26,500 Required: 1 & 2. Prepare the journal entries to record the direct materials, direct labor costs and related variances for Rip Tide. Standard Unit Cost $ 89.64 139.10 53.50 120.00 Note: If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations and round your final answers to nearest dollar amount. Required: 1 & 2. Prepare the journal entries to record the direct materials, direct labor costs and related variances for Rip Tide. Note: If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations and round your final answers to nearest dollar amount.
Rip Tide Company manufactures surfboards. Its standard cost information follows: Direct materials (fiberglass) Direct labor Standard Quantity 16.6 square feet 10.7 hours 10.7 hours Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($33,000 + 275 units) Rip Tide has the following actual results for the month of June: Number of units produced and sold Number of square feet of fiberglass purchased and used Cost of fiberglass used Number of labor hours worked. Direct labor cost Variable overhead cost Fixed overhead cost Standard Price (Rate)) $5.4 per square feet $13 per hour $5 per hour 170 5,300 $ 31,800 1,739 $ 23,650 $7,999 $ 26,500 Required: 1 & 2. Prepare the journal entries to record the direct materials, direct labor costs and related variances for Rip Tide. Standard Unit Cost $ 89.64 139.10 53.50 120.00 Note: If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations and round your final answers to nearest dollar amount. Required: 1 & 2. Prepare the journal entries to record the direct materials, direct labor costs and related variances for Rip Tide. Note: If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations and round your final answers to nearest dollar amount.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
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Transcribed Image Text:Rip Tide Company manufactures surfboards. Its standard cost information follows:
Direct materials (fiberglass)
Direct labor
Variable manufacturing overhead (based on
direct labor hours).
Fixed manufacturing overhead ($33,000+ 275
units)
Rip Tide has the following actual results for the month of June:
Number of units produced and sold
Number of square feet of fiberglass purchased and used
Cost of fiberglass used
Number of labor hours worked
Direct labor cost
Variable overhead cost
Fixed overhead cost
Required:
1& 2. Prepare the journal entries to record the direct materials, direct labor costs and related variances for Rip Tide.
View transaction list
Journal entry worksheet
Required:
1 & 2. Prepare the journal entries to record the direct materials, direct labor costs and related variances for Rip Tide.
A
Note: If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round
intermediate calculations and round your final answers to nearest dollar amount.
Record the entry for direct materials costs and variances.
Standard Quantity
16.6 square feet
10.7 hours
10.7 hours
Note: If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round
intermediate calculations and round your final answers to nearest dollar amount.
B
Note: Enter debits before credits
Transaction.
1
Record entry
General Journal
Clear entry
Standard Price (Rate):
$ 5.4 per square feet
$ 13 per hour
$5 per hour
170
5,300
$ 31,800
1,739
$ 23,650
$7,999
$ 26,500
Debit
Credit
Standard
Unit
Cost
$ 89.64
139.10
53.50
View general journal
120.00
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