Standard costing, journal entries. The Warner Company manufactures reproductions of expen- sive sunglasses. Warner uses the standard-costing method of process costing to account for the produc- tion of the sunglasses. All materials are added at the beginning of production. The costs and output of sunglasses for May 2017 are as follows: Physical % of Completion for Conversion Costs 60% Direct Materials Conversion Costs Work in process, beginning Started during May Completed and transferred out Work in process, ending Standard cost per unit Costs added during May Units 22,000 95,000 87,000 30,000 $ 48,400 $ 33,000 75% $ 2.20 $ 2.50 $207,500 $238,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Topic Video
Question

Compute the total May variances for direct materials and conversion costs.

Standard costing, journal entries. The Warner Company manufactures reproductions of expen-
sive sunglasses. Warner uses the standard-costing method of process costing to account for the produc-
tion of the sunglasses. All materials are added at the beginning of production. The costs and output of
sunglasses for May 2017 are as follows:
Physical
% of Completion for
Conversion Costs
60%
Direct
Materials
Conversion
Costs
Work in process, beginning
Started during May
Completed and transferred out
Work in process, ending
Standard cost per unit
Costs added during May
Units
22,000
95,000
87,000
30,000
$ 48,400
$ 33,000
75%
$ 2.20
$ 2.50
$207,500
$238,000
Transcribed Image Text:Standard costing, journal entries. The Warner Company manufactures reproductions of expen- sive sunglasses. Warner uses the standard-costing method of process costing to account for the produc- tion of the sunglasses. All materials are added at the beginning of production. The costs and output of sunglasses for May 2017 are as follows: Physical % of Completion for Conversion Costs 60% Direct Materials Conversion Costs Work in process, beginning Started during May Completed and transferred out Work in process, ending Standard cost per unit Costs added during May Units 22,000 95,000 87,000 30,000 $ 48,400 $ 33,000 75% $ 2.20 $ 2.50 $207,500 $238,000
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 5 images

Blurred answer
Knowledge Booster
Performance measurements
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education