Squirrel Co. operates in a lean manufacturing environment. For June production, Squirrel purchased 6,000 units of raw materials at $6.00 per unit on account. The journal entry required to record this transaction is

Squirrel Co. operates in a lean manufacturing environment. For June production, Squirrel purchased 6,000 units of raw materials at $6.00 per unit on account. The journal entry required to record this transaction is

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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Sinkoe’s Optometry Center purchases all raw materials (e.g. lenses, frames, etc.) on credit. During June, these purchases totalled P 8,700. Labor and actual overhead during June totalled P 24,000 and P 35,000, respectively. In addition to the labor cost, the applied conversion cost included an added P 38,000. All of the eyeglasses worked on during the month were completed and sold on credit for a total of P 80,000. Requirements: Record these transactions (including any closing entries) into T-accounts, assuming a traditional costing. Record these transactions (including any closing entries) into T-accounts, assuming a JIT cost system.
Zulfiqar Corporation has provided data concerning its operations for September. The beginning balance in the raw materials account was Rs. 30,000 and the ending balance was Rs. 35,000. Raw materials purchases during the month totaled Rs. 85,000. Manufacturing overhead cost incurred during the month was Rs. 64,000, of which Rs. 5,000 consisted of raw materials classified as indirect materials. The direct materials cost for September was:
(b) Compute the total overhead variance. Total overhead variance $ LA
Morton Inc. has provided the following data for the month of November. The balance in the Finished Goods inventory account at the beginning of the month was $50,500 and at the end of the month was $46,500. The cost of goods manufactured for the month was $241,000. The actual manufacturing overhead cost incurred was $89,000 and the manufacturing overhead cost allocated to Work in Process was $85,000. The adjusted cost of goods sold that would appear on the income statement for November is: $241,000 $245,000 $237,000 $249,000
Regent Corporation uses a standard cost system to account for the costs of its one product. Materials standards are 3 pounds of material at $14.00 per pound, and labor standards are 9 hours of labor at a standard wage rate of $10.5. During July, Regent Corporation produced 3,050 units. Materials purchased and used totaled 10,600 pounds at a total cost of $143,213. Payroll totaled $151,780 for 38,150 hours worked. Required: a. Calculate the direct materials price variance. Note: Do not round your intermediate calculations. Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance). b. Calculate the direct materials quantity variance. Note: Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance). c. Calculate the direct materials spending variance. Note: Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero…
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The management of K31Corporation has asked your help as an intern in preparing some key reports for June. The beginning balance in the raw materials inventory account was P20,000. During the month, the company made raw materials purchases amounting to P69,000. At the end of the month, the balance in the raw materials inventory account was P32,000. Direct labor cost was P24,000 and manufacturing overhead was P71,000. The beginning balance in the work in process account was P24,000 and the ending balance was P19,000. The beginning balance in the finished goods account was P53,000 and the ending balance was P58,000. Selling expense was P20,000 and administrative expense was P35,000. Required: 21. Calculate the total prime cost for June. = 22. The conversion cost for June was? 23. How much is the total cost of inventory to be presented in the financial position of the Company? =
Cello Industries commenced operations in January and uses a standard cost accounting system. During the month of January, Cello purchased and used 32,000 pounds of raw materials at a cost of $2.80 per pound. The standard price is $3.00 per pound. Cello completed 15,500 units of finished goods during January and the standard quantity of raw materials per unit is 2.0 pounds.. Which of the following journal entries properly records the purchase and use of raw materials in January? A. B. C. D. WIP inventory Dr. $93,000 Dr. $93,000 Dr. $92,600 Dr. $92,600 O Choice A O Choice B O Choice C O Choice D O None of the above Price variance Cr. $6,400 Cr. $6,200 Dr. $6,200 Dr. $6,400 Quantity variance Dr. $3,000 Dr. $2,800 Cr. $2,800 Cr. $3,000 Accounts payable Cr. $89,600 Cr. $89,600 Cr. $96,000 Cr. $96,000
Concord Company purchases $54,600 of raw materials on account, and it incurs $63,000 of the factory labor costs. Supporting records show that (a) the Assembly Department used $30,100 of raw materials and $40,100 of the factory labor, and (b) the Finishin Department used the remainder. Journalize the assignment of the costs to the processing departments on March 31. (Credit account titles are automatically indented wh amount is entered. Do not indent manually.) Date Account Titles and Explanation Mar. 31 31 (To record materials used) Debit Credit
during the current month, carla vista company incurs the following manufacturing costs. (a) purchased raw materials of $17600 on account. (b) incurred factory labor of $ 38400. (C) factory utilities of $2840 are payable, prepaid factory insurance of $2560 have expired, and depreciation on the factory building is $9200. prepare the journal entries for each type of manufacturing cost.
Cerrone Inc. has provided the following data for the month of July. The balance in the Finished Goods inventory account at the beginning of the month was $50,400 and at the end of the month was $38,400. The cost of goods manufactured for the month was $291,000. The actual manufacturing overhead cost incurred was $165,400 and the manufacturing overhead cost applied to Work in Process was $154,000. The adjusted cost of goods sold that would appear on the income statement for July is: $279,000 $303,000 $291,600 $314,400
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 ($27,000 ÷ 250 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 View transaction list Journal entry worksheet A 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. B Standard Quantity 13.5 square feet 9.8 hours 9.8 hours Record the entry for direct materials costs…