The managers at Waterway Company were excited to learn that the purchasing department got a bulk shipment of a key raw material for $7,300, a $600 savings from their plan. Later that month, however, the production department had used nearly all the material that had been purchased, noting a $1,300 higher cost of material used than its flexible budget DM cost of $6,200. Record Waterway's journal entry for the purchase of DM using standard costing, and then record the company's journal entry for usage of DM using standard costing. (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.) Account Titles and Explanation Raw Material Inventory Direct Materials Price Variance Debit 7900 Credit 600

The managers at Waterway Company were excited to learn that the purchasing department got a bulk shipment of a key raw material for $7,300, a $600 savings from their plan. Later that month, however, the production department had used nearly all the material that had been purchased, noting a $1,300 higher cost of material used than its flexible budget DM cost of $6,200. Record Waterway's journal entry for the purchase of DM using standard costing, and then record the company's journal entry for usage of DM using standard costing. (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.) Account Titles and Explanation Raw Material Inventory Direct Materials Price Variance Debit 7900 Credit 600

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Sunland Industries produces a cleaning product that works for the peskiest stains. It's pricey, but less expensive than hiring a professional cleaning service. The managers at Sunland are conducting variance analysis at the end of January, the first month of the new fiscal year. Budgeted fixed-MOH costs for the year were $2,534,400. The company's standards for one gallon of cleaning solution are as follows, along with actual information for the month. DM DL Variable-MOH Fixed-MOH ● ● ● Standard Quantity per Unit 0.5 gallons of solution 0.3 DL hours Actual results for January: ● 2.0 machine hours 2.0 machine hours. Show Transcribed Text Show Transcribed Text 26,000 gallons were actually produced. Cost of DM purchased was $250,560 for 14,400 gallons of solution. DM used in production was 12,740 gallons. Cost of DL was $133,796 for 8,060 DL hours worked. Variable-MOH cost was $117,390 for 54,600 machine hours used. Fixed-MOH cost was $223,860. Fixed-MOH price variance $ $17.00 per gallon…
Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to four separate activity pools. The budgeted activity cost and activity base data by product are provided below. Activity Cost Activity Base Procurement $364,200 Number of purchase orders Scheduling 243,400 Number of production orders Materials handling 417,300 Number of moves Product development 773,900 Number of engineering changes Production 1,428,300 Machine hours Number of Number of Number Number of Number Purchase Production of Engineering Machine of Orders Orders Moves Changes Hours Units Disk drives 4,120 270 1,500 11 2,200 2,100 Tape drives 2,400 245 500 7 8,500 3,500 Wire drives 11,500 790 3,500 21 10,700 2,400 The activity-based cost for each tape drive unit is Oa. $291.69 Ob. $239.52 Oc. $740.06 Od. $20.21
Suppose a company has 1,000 units of a raw material part on hand. If 750 of these units are routed into production, should the company place an order to stock up on more of these parts? (Show calculations). Determine the economic order quantity (EOQ) for this part, assuming the following:The company plans to use 10,000 units during the coming year.The company orders this part in lots of 1,000 units, and each order placed carries a processing cost of $2.50.Each unit of inventory carries an annual holding cost of $6.40.
oriole company provides financial consulting and has collected the following data for the nexts years budgeted activity for a lead consultant, the company employs time and materials pricing. consultants wages $95000 fringe benefits $12500 related overhead $17500 materials clerk wages$17000 fringe benefits $4500 related overhead $20000 profit margin per hour $20 profit margin on materials 33% total estimated consulting hours 5000 total estimated material costs $166000.... the material loading charge is?a)33% b)58% c)25% d)91%
The budgeted conversion costs for a just-in-time cell are $224,200 for 3,800 production hours. Each unit produced by the cell requires 45 minu process time. During the month, 2,300 units are manufactured in the cell. The estimated materials cost is $50 per unit. What is the journal ent units are completed and placed into finished goods? a. Raw and In Process Inventory 207,350 Finished Goods Inventory 207,350 Ob. Finished Goods Inventory 239,800 Raw and In Process Inventory 239,800 ○ c. Raw and In Process Inventory 239,800 Finished Goods Inventory 239,800 Od. Finished Goods Inventory 207,350 Raw and In Process Inventory 207,350
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During the first quarter, skeleton produced 60,000 units and incurred total manufacturing costs of $184,000 b. A performance report for Skelton's first quarter of operations using a flexible budget approach would show: A) Actual costs over budget by $1,300. B) Actual costs over budget by $11,700. C) Actual costs over budget by $15,150. D) Total costs per the flexible budget of $194,400.
The Janesky Company has collected data on the manufacture of 6,473 robot grippers last month. The breakdown of total costs is shown below. They now need to plan for future months. Units sold last month 6,473 Direct materials $142,853 Direct labor $379,071 Manufacturing variable overhead $267,425 Selling and administrative costs $211,977 What is the break even quantity for a price of $382?
Modern Lighting Inc. manufactures lighting fixtures, using lean manufacturing methods. Style Omega has a materials cost per unit of $24. The budgeted conversion cost for the year is $148,200 for 2,600 production hours. A unit of Style Omega requires 10 minutes of cell production time. The following transactions took place during June: Materials were acquired to assemble 930 Style Omega units for June. Conversion costs were applied to 930 Style Omega units of production. 860 units of Style Omega were completed in June. 810 units of Style Omega were sold in June for $70 per unit. Question Content Area a. Determine the budgeted cell conversion cost per hour. If required, round to the nearest cent.fill in the blank 1 of 1$ per hour b. Determine the budgeted cell conversion cost per unit. If required, round to the nearest cent.fill in the blank 1 of 1$ per unit Feedback Area Feedback Question Content Area c. Journalize the summary transactions (1)–(4) for…
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