Flexible Budget:- Flexible Budget is a budget which recognize the difference in behavior between fixed and variable costs in relation to fluctuation in output, turnover, or other variable factors, etc. it is designed to change in relation to the level of activity actually attained. :- Raw Material Cost to be included in company’s flexible budget.

Question

Carla Vista Manufacturing Company uses a job order cost system and keeps perpetual inventory records. June 1 Purchased raw materials for $23,600 on account. 8 Raw materials requisitioned by production: $9,440 Direct materials Indirect materials 1,180 Paid factory utilities, $2,478 and repairs for factory equipment, $9,440. 15 25 Incurred $122,000 of factory labor. 25 Time tickets indicated the following: Direct Labor (7,000 hrs x $14 per hr) $98,000 Indirect Labor (3,000 hrs x $8 per hr) 24,000 $122,000 45 25 Applied manufacturing overhead to production based on a predetermined overhead rate of $7 per direct labor hour worked. 28 30 Goods costing $18,020 were completed in the factory and were transferred to finished goods inventory. Goods costing $15,020 were sold for $20,020 on account. Prepare journal entries to record the above transactions during the month of June. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit…

Answer 1

Question

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

Chapter 10, Problem 2F15

To determine

Flexible Budget:- Flexible Budget is a budget which recognize the difference in behavior between fixed and variable costs in relation to fluctuation in output, turnover, or other variable factors, etc. it is designed to change in relation to the level of activity actually attained.

:-

Raw Material Cost to be included in company’s flexible budget.

Expert Solution & Answer

Trending nowThis is a popular solution!

See solution

Check out sample textbook solution

Students have asked these similar questions

Carla Vista Manufacturing Company uses a job order cost system and keeps perpetual inventory records. June 1 Purchased raw materials for $23,600 on account. 8 Raw materials requisitioned by production: $9,440 Direct materials Indirect materials 1,180 Paid factory utilities, $2,478 and repairs for factory equipment, $9,440. 15 25 Incurred $122,000 of factory labor. 25 Time tickets indicated the following: Direct Labor (7,000 hrs x $14 per hr) $98,000 Indirect Labor (3,000 hrs x $8 per hr) 24,000 $122,000 45 25 Applied manufacturing overhead to production based on a predetermined overhead rate of $7 per direct labor hour worked. 28 30 Goods costing $18,020 were completed in the factory and were transferred to finished goods inventory. Goods costing $15,020 were sold for $20,020 on account. Prepare journal entries to record the above transactions during the month of June. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit…

PART 2. (22 marks) Mangal Furnishings produce serving trays for the tourist industry in a five-stage process - Cutting & Shaping, Assembly, Sanding, Finishing and Packaging. Upon entering the finishing process, before the trays are stained and polished, a specialized piece of equipment is used to engrave a logo on each tray. After Packaging, the trays are sent to the business warehouse for delivery to customers. The following data relates to the Finishing Process for the month of March during which 3,800 trays valued at $597.90 each were transferred in from the Sanding Process. Other production costs incurred during the month are summarized as follows: Direct Materials Added Direct Manufacturing Wages Hireage cost of specialized logo equipment Manufacturing Overhead $343,380 $830,150 $21,300 $412,100 Process inspection occurs during the process and normally 2% of the trays entering the Finishing process are rejected and sold as scrap to local retailers at $750 each. During the month…

Cline Manufacturing Company uses a job order system and maintains perpetual inventory records. Indicate the the appropriate account(s) to be debited and credited for the transactions listed below. (On multiple entries enter answers in alphabetical order.) Transactions 1. Raw materials were purchased on account. 2. Issued a check to Dixon Machine Shop for repair work on factory equipment. 3. Direct materials were requisitioned for Job 280. 4. Factory labor was paid as incurred. 5. Recognized direct labor and indirect labor used. 6. The production department requisitioned 7. indirect materials for use in the factory. Manufacturing overhead was applied to production based on a predetermined overhead rate of $8 per labor hour. 8. Goods that were completed were transferred to finished goods inventory. 9. Goods costing $80,000 were sold for $105,000 on account. 10. Paid for raw materials purchased previously on account. Account(s) Debited

Answer 2

Question

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

Chapter 10, Problem 2F15

To determine

Flexible Budget:- Flexible Budget is a budget which recognize the difference in behavior between fixed and variable costs in relation to fluctuation in output, turnover, or other variable factors, etc. it is designed to change in relation to the level of activity actually attained.

:-

Raw Material Cost to be included in company’s flexible budget.

Expert Solution & Answer

Trending nowThis is a popular solution!

See solution

Check out sample textbook solution

Answer 3

Question

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

Chapter 10, Problem 2F15

To determine

Flexible Budget:- Flexible Budget is a budget which recognize the difference in behavior between fixed and variable costs in relation to fluctuation in output, turnover, or other variable factors, etc. it is designed to change in relation to the level of activity actually attained.

:-

Raw Material Cost to be included in company’s flexible budget.

Expert Solution & Answer

Trending nowThis is a popular solution!

See solution

Check out sample textbook solution

Answer 4

Question

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

Chapter 10, Problem 2F15

To determine