SB (Static) Patel and Sons ... Skip to question [The following information applies to the questions displayed below.] Patel and Sons Incorporated uses a standard cost
SB (Static) Patel and Sons ... Skip to question [The following information applies to the questions displayed below.] Patel and Sons Incorporated uses a standard cost
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![SB (Static) Patel and Sons ... Skip to
question [The following information 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 15-19 (Static) Provide the
appropriate journal entries... [LO 15-4]
Based on the information provided above,
provide the appropriate journal entries (a)
to record the overhead cost variances for
the period (thereby closing out the balance
in the Factory Overhead account), and (b) to
close the variance accounts to the Cost of
Goods Sold (CGS) account at the end of the
period. (If no entry is required for a
transaction/event, select "No journal entry
required" in the first account field.)
Record the factory overhead variances.
Record the entry to close the variance
accounts to cost of goods sold.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff047f7f4-07a3-4222-b925-8eb6de616d93%2Fa5e2bdcc-dea8-45a1-af11-05eae254f73b%2Fss0zuse_processed.jpeg&w=3840&q=75)
Transcribed Image Text:SB (Static) Patel and Sons ... Skip to
question [The following information 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 15-19 (Static) Provide the
appropriate journal entries... [LO 15-4]
Based on the information provided above,
provide the appropriate journal entries (a)
to record the overhead cost variances for
the period (thereby closing out the balance
in the Factory Overhead account), and (b) to
close the variance accounts to the Cost of
Goods Sold (CGS) account at the end of the
period. (If no entry is required for a
transaction/event, select "No journal entry
required" in the first account field.)
Record the factory overhead variances.
Record the entry to close the variance
accounts to cost of goods sold.
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