The final amounts were in for Sheffield Corp's fixed-MOH costs. The total fixed-MOH costs consisted of $2,400 of insurance (all prepaid), $3,700 in accrued supervisor salaries, $3,500 of factory-related depreciation, and $1,500 in property taxes (paid in cash). Sheffield's applied fixed-MOH costs amounted to $12,200 for the year. Further, both fixed-MOH variances were favorable, the price variance being $300 and the volume variance being $800. Your answer is partially correct. Record the following journal entries: (1) to recognize the actual fixed-MOH costs incurred, (2) the allocation of fixed-MOH to production, and (3) the final recognition of specific fixed-MOH variances (while closing out the control account). (Credit account titles are automatically indented when amount is entered. Do not Indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. List all debit entries before credit entries.) No. Account Titles and Explanation (1) Fored-MOH Control (2) (3) Prepaid Insurance Salaries and Wages Payable Accumulated Depreciation Cash WIP Inventory Fixed MOH Control Fixed-MOH Control Fixed-MOH Price Variance S & Fixed-MOH Volume Variance S ad-MOH Control Debit 2400 3700 3500 1500 12200 800 300 Credit 11100 12200 1100
The final amounts were in for Sheffield Corp's fixed-MOH costs. The total fixed-MOH costs consisted of $2,400 of insurance (all prepaid), $3,700 in accrued supervisor salaries, $3,500 of factory-related depreciation, and $1,500 in property taxes (paid in cash). Sheffield's applied fixed-MOH costs amounted to $12,200 for the year. Further, both fixed-MOH variances were favorable, the price variance being $300 and the volume variance being $800. Your answer is partially correct. Record the following journal entries: (1) to recognize the actual fixed-MOH costs incurred, (2) the allocation of fixed-MOH to production, and (3) the final recognition of specific fixed-MOH variances (while closing out the control account). (Credit account titles are automatically indented when amount is entered. Do not Indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. List all debit entries before credit entries.) No. Account Titles and Explanation (1) Fored-MOH Control (2) (3) Prepaid Insurance Salaries and Wages Payable Accumulated Depreciation Cash WIP Inventory Fixed MOH Control Fixed-MOH Control Fixed-MOH Price Variance S & Fixed-MOH Volume Variance S ad-MOH Control Debit 2400 3700 3500 1500 12200 800 300 Credit 11100 12200 1100
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The final amounts were in for Sheffield Corp's fixed-MOH costs. The total fixed-MOH costs consisted of $2,400 of insurance (all
prepaid), $3,700 in accrued supervisor salaries, $3,500 of factory-related depreciation, and $1,500 in property taxes (paid in cash).
Sheffield's applied fixed-MOH costs amounted to $12,200 for the year. Further, both fixed-MOH variances were favorable, the price
variance being $300 and the volume variance being $800.
Your answer is partially correct.
Record the following journal entries: (1) to recognize the actual fixed-MOH costs incurred, (2) the allocation of fixed-MOH to
production, and (3) the final recognition of specific fixed-MOH variances (while closing out the control account). (Credit account titles
are automatically indented when amount is entered. Do not Indent manually. If no entry is required, select "No Entry" for the account titles and
enter o for the amounts. List all debit entries before credit entries.)
No. Account Titles and Explanation
(1) Fored-MOH Control
(2)
(3)
Prepaid Insurance
Salaries and Wages Payable
Accumulated Depreciation
Cash
WIP Inventory
Fixed MOH Control
Fixed-MOH Control
Fixed-MOH Price Variance
S
&
Fixed-MOH Volume Variance
S
ad-MOH Control
Debit
2400
3700
3500
1500
12200
800
300
Credit
11100
12200
1100
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