Suzy-Q Corporation has established the following standard cost per unit: Materials—5.5 lb @ $2.20 per lb . . . ............................... $12.10 Labor—1.8 hr @ $6.25 per hr . . . .................................. 11.25 Although 10,000 units were budgeted, only 8,800 units were produced. The purchasing department bought 55,000 pounds of materials at $123,750. Actual pounds of materials used were 54,305. Direct labor cost was $127,400 for 18,200 hours worked. Required: 1. Make journal entries to record the materials transactions, assuming that the materials price variance was recorded at the time of purchase. 2. Make journal entries to record the labor variances

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
100%

Suzy-Q Corporation has established the following standard cost
per unit:
Materials—5.5 lb @ $2.20 per lb . . . ............................... $12.10
Labor—1.8 hr @ $6.25 per hr . . . .................................. 11.25
Although 10,000 units were budgeted, only 8,800 units were
produced.
The purchasing department bought 55,000 pounds of materials at $123,750. Actual pounds of materials used were
54,305. Direct labor cost was $127,400 for 18,200 hours worked.
Required:
1. Make journal entries to record the materials transactions,
assuming that the materials price variance was recorded at
the time of purchase.
2. Make journal entries to record the labor variances

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

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.
Similar questions
  • SEE MORE QUESTIONS
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