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
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
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
Prepare summarized journal entries to record both the actual costs and standard costs for direct materials and conversion costs, including the variances for both production costs.
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
Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.
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