Simpson Manufacturing has the following standard cost sheet for one of its products:Total5 pounds at $2 per pound2 hours at $25 per hour2 hours at $5 per hour2 hours at $20 per hourDirect materials$ 10Direct labor50Variable factory overheadFixed factory overhead1040Cost per unit$ 110The company uses a standard cost system and applies factory overhead cost based on direct labor hours and determines the factoryoverhead rate based on a practical capacity of 400 units of the product.Simpson has the following actual operating results for the year just completed:Units manufactured376$ 20,680Direct materials purchased and usedDirect labor incurredVariable factory overhead incurredFixed factory overhead incurred1,880 pounds830 hours22,4105,31215,800Before closing the periodic accounts, the (standard cost) entries in selected accounts follow:Debit (total) Credit (tota1)$ 177,000142,640119,690Account$ 142,640Work-in-process inventoryFinished goods inventoryCost of goods sold119,690 Journal entry worksheet23 4 5<>Record the incurrence of factory overhead costs.Note: Enter debits before credits.TransactionGeneral JournalDebitCreditaRecord entryClear entryView general jourmal

A journal entry is a form of accounting entry that is used to report a business transaction in a…

Simpson Manufacturing has the following standard cost sheet for one of its products: Total 5 pounds at $2 per pound 2 hours at $25 per hour 2 hours at $5 per hour 2 hours at $20 per hour $ 10 50 Direct materials Direct labor Variable factory overhead Fixed factory overhead Cost per unit 10 40 $ 110 The company uses a standard cost system and applies factory overhead cost based on direct labor hours and determines the factory overhead rate based on a practical capacity of 400 units of the product. Simpson has the following actual operating results for the year just completed: Units manufactured Direct materials purchased and used Direct labor incurred Variable factory overhead incurred Fixed factory overhead incurred 376 $ 20,680 22,410 5,312 15,800 1,880 pounds 830 hours Before closing the periodic accounts, the (standard cost) entries in selected accounts follow: Account Work-in-process inventory Finished goods inventory Cost of goods sold Debit (total) Credit (total) $ 177,000 142,640 119,690 $ 142,640 119,690

Simpson Manufacturing has the following standard cost sheet for one of its products: Total 5 pounds at $2 per pound 2 hours at $25 per hour 2 hours at $5 per hour 2 hours at $20 per hour $ 10 50 Direct materials Direct labor Variable factory overhead Fixed factory overhead Cost per unit 10 40 $ 110 The company uses a standard cost system and applies factory overhead cost based on direct labor hours and determines the factory overhead rate based on a practical capacity of 400 units of the product. Simpson has the following actual operating results for the year just completed: Units manufactured Direct materials purchased and used Direct labor incurred Variable factory overhead incurred Fixed factory overhead incurred 376 $ 20,680 22,410 5,312 15,800 1,880 pounds 830 hours Before closing the periodic accounts, the (standard cost) entries in selected accounts follow: Account Work-in-process inventory Finished goods inventory Cost of goods sold Debit (total) Credit (total) $ 177,000 142,640 119,690 $ 142,640 119,690

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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