[The following information applies to the questions displayed below.] Saskatewan Can Company manufactures recyclable soft-drink cans. A unit of production is a case of 12 dozen cans. The following standards have been set by the production-engineering staff and the controller. Direct Labor: Quantity, 0.25 hour Rate, $16 per hour Direct Material: Quantity, 4 kilograms Price, 50.80 per kilogram Actual material purchases amounted to 240,000 kilograms at $.81 per kilogram. Actual costs incurred in the production of 50,000 units were as follows: Direct labor: Direct material: $211,900 for 13,000 hours $170,100 for 210,000 kilograms Exercise 10-31 Required: Prepare the following journal entries. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations.)
[The following information applies to the questions displayed below.] Saskatewan Can Company manufactures recyclable soft-drink cans. A unit of production is a case of 12 dozen cans. The following standards have been set by the production-engineering staff and the controller. Direct Labor: Quantity, 0.25 hour Rate, $16 per hour Direct Material: Quantity, 4 kilograms Price, 50.80 per kilogram Actual material purchases amounted to 240,000 kilograms at $.81 per kilogram. Actual costs incurred in the production of 50,000 units were as follows: Direct labor: Direct material: $211,900 for 13,000 hours $170,100 for 210,000 kilograms Exercise 10-31 Required: Prepare the following journal entries. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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![Required information
Journal Entries under Standard Costing (Appendix), Posting Journal Entries for Variances (Appendix) (LO
10-6, 10-9)
[The following information applies to the questions displayed below.]
Saskatewan Can Company manufactures recyclable soft-drink cans. A unit of production is a case of 12 dozen cans. The
following standards have been set by the production-engineering staff and the controller.
Direct Labor:
Direct Material:
Quantity, 0.25 hour
Rate, $16 per hour
Quantity, 4 kilograms
Price, $0.80 per kilogram
Actual material purchases amounted to 240,000 kilograms at $.81 per kilogram. Actual costs incurred in the production of
50,000 units were as follows:
Direct labor:
$211,900 for 13,000 hours
$170,100 for 210,000 kilograms
Direct material:
Exercise 10-31
Required:
Prepare the following journal entries. (If no entry is required for a transaction/event, select "No journal entry required" in the first
account field. Do not round intermediate calculations.)
View transaction list
Journal entry worksheet
(1
2
3
4
>
Record the addition of direct-material cost to work-in-process inventory
and the direct-material quantity variance.
Note: Enter debits before credits.
Transaction
General Journal
Debit
Credit
2
Work-in-process inventory
160,000
8,000
Direct-material quantity variance
168,000
Record entry
Clear entry
View general journal](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F027a530b-cb59-4922-b3e1-9ec9990a717c%2Fef489e37-8f34-455d-85eb-376964e7028c%2Feowpxv6_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
Journal Entries under Standard Costing (Appendix), Posting Journal Entries for Variances (Appendix) (LO
10-6, 10-9)
[The following information applies to the questions displayed below.]
Saskatewan Can Company manufactures recyclable soft-drink cans. A unit of production is a case of 12 dozen cans. The
following standards have been set by the production-engineering staff and the controller.
Direct Labor:
Direct Material:
Quantity, 0.25 hour
Rate, $16 per hour
Quantity, 4 kilograms
Price, $0.80 per kilogram
Actual material purchases amounted to 240,000 kilograms at $.81 per kilogram. Actual costs incurred in the production of
50,000 units were as follows:
Direct labor:
$211,900 for 13,000 hours
$170,100 for 210,000 kilograms
Direct material:
Exercise 10-31
Required:
Prepare the following journal entries. (If no entry is required for a transaction/event, select "No journal entry required" in the first
account field. Do not round intermediate calculations.)
View transaction list
Journal entry worksheet
(1
2
3
4
>
Record the addition of direct-material cost to work-in-process inventory
and the direct-material quantity variance.
Note: Enter debits before credits.
Transaction
General Journal
Debit
Credit
2
Work-in-process inventory
160,000
8,000
Direct-material quantity variance
168,000
Record entry
Clear entry
View general journal
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