Financial & Managerial Accounting
13th Edition
ISBN: 9781285866307
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Chapter 22, Problem 22.5APE
To determine
In the accounting records, the term standard cost refers to the practice of replacement of an expected cost for an actual cost. Then the difference between the expected costs, and actual costs showing the variance are also recorded periodically. A standard costs is also known as target cost or predetermined cost.
To journalize: The entry to record the standard direct materials used in production.
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Standard Cost Journal Entries
Bellingham Company produced 2,000 units that require five standard pounds per unit at a $6.5 standard price per pound. The company actually used 10,200 pounds in production.
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Bellingham Company produced 5,900 units that require 12 standard pounds per unit at a $10 standard price per pound. The company actually used 73,600 pounds in production.
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Dvorak Company produced 4,900 units that require 14 standard pounds per unit at $11 standard price per pound. The company actually used 67,200 pounds in production.
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Chapter 22 Solutions
Financial & Managerial Accounting
Ch. 22 - What are the basic objectives in the use of...Ch. 22 - What is meant by reporting by the principle of...Ch. 22 - Prob. 3DQCh. 22 - The materials cost variance report for Nickols...Ch. 22 - Prob. 5DQCh. 22 - Prob. 6DQCh. 22 - Prob. 7DQCh. 22 - A. Describe the two variances between the actual...Ch. 22 - If variances are recorded in the accounts at the...Ch. 22 - Briefly explain why firms might use non financial...
Ch. 22 - Direct materials variances Lo-bed Company produces...Ch. 22 - Direct materials variances Dvorak Company produces...Ch. 22 - Prob. 22.2APECh. 22 - Prob. 22.2BPECh. 22 - Prob. 22.3APECh. 22 - Prob. 22.3BPECh. 22 - Prob. 22.4APECh. 22 - Prob. 22.4BPECh. 22 - Prob. 22.5APECh. 22 - Prob. 22.5BPECh. 22 - Prob. 22.6APECh. 22 - Income statement with variances Prepare a 2016...Ch. 22 - Prob. 22.7APECh. 22 - Prob. 22.7BPECh. 22 - Prob. 22.1EXCh. 22 - Standard product cost Wood You Lie To Me Furniture...Ch. 22 - Budget performance report Genie in a Bottle...Ch. 22 - Direct materials variances The following data...Ch. 22 - Direct materials variances Silicone Engine Inc....Ch. 22 - Standard direct materials cost per unit from...Ch. 22 - Standard product cost, direct materials variance...Ch. 22 - Direct labor variances The following data relate...Ch. 22 - Direct labor variances Greeson Clothes Company...Ch. 22 - Prob. 22.11EXCh. 22 - Direct labor standards for a service company One...Ch. 22 - Direct labor variances for a service company...Ch. 22 - Direct materials and direct labor variances At the...Ch. 22 - Flexible overhead budget Leno Manufacturing...Ch. 22 - Flexible overhead budget Wiki Wiki Company has...Ch. 22 - Factory overhead cost variances The following data...Ch. 22 - Factory overhead cost variances Blumen Textiles...Ch. 22 - Factory overhead variance corrections The data...Ch. 22 - Factory overhead cost variance report Tannin...Ch. 22 - Recording standards in accounts Cioffi...Ch. 22 - Recording standards in accounts "The Assembly...Ch. 22 - Prob. 22.23EXCh. 22 - Nonfinancial performance measures Diamond Inc. is...Ch. 22 - Prob. 22.25EXCh. 22 - Direct materials and direct labor variance...Ch. 22 - Flexible budgeting and variance analysis I Love My...Ch. 22 - Direct materials, direct labor, and factory...Ch. 22 - Factory overhead cost variance report Tiger...Ch. 22 - Standards for nonmanufacturing expenses Code Head...Ch. 22 - Direct materials and direct labor variance...Ch. 22 - Flexible budgeting and variance analysis I'm...Ch. 22 - Direct materials, direct labor, and factory...Ch. 22 - Factory overhead cost variance report Feeling...Ch. 22 - Prob. 22.5BPRCh. 22 - Prob. 1CPPCh. 22 - Ethics in Action Dash Riprock is a cost analyst...Ch. 22 - Prob. 22.2CPCh. 22 - Variance interpretation You have been asked to...Ch. 22 - Variance interpretation Vanadium Audio Inc. is a...
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- Algers Company produces dry fertilizer. At the beginning of the year, Algers had the following standard cost sheet: Algers computes its overhead rates using practical volume, which is 54,000 units. The actual results for the year are as follows: a. Units produced: 53,000 b. Direct materials purchased: 274,000 pounds at 2.50 per pound c. Direct materials used: 270,300 pounds d. Direct labor: 40,100 hours at 17.95 per hour e. Fixed overhead: 161,700 f. Variable overhead: 122,000 Required: 1. Compute price and usage variances for direct materials. 2. Compute the direct labor rate and labor efficiency variances. 3. Compute the fixed overhead spending and volume variances. Interpret the volume variance. 4. Compute the variable overhead spending and efficiency variances. 5. Prepare journal entries for the following: a. The purchase of direct materials b. The issuance of direct materials to production (Work in Process) c. The addition of direct labor to Work in Process d. The addition of overhead to Work in Process e. The incurrence of actual overhead costs f. Closing out of variances to Cost of Goods Soldarrow_forwardStandard Cost Journal Entries Alvarado Company produced 2,800 units that require nine standard pounds per unit at a $10.50 standard price per pound. The company actually used 26,000 pounds in production. Journalize the entry to record the standard direct materials used in production. If an amount box does not require an entry, leave it blank.arrow_forwardStandard Cost Journal Entries Alvarado Company produced 5,500 units that require eight standard pounds per unit at a $3.50 standard price per pound. The company actually used 45,800 pounds in production. Journalize the entry to record the standard direct materials used in production. If an amount box does not require an entry, leave it blank. 000arrow_forward
- Journalize the Entryarrow_forwardJornalize the entry to record the standard direct materials used in productionarrow_forwardStandard Cost Journal Entries Dvorak Company produced 6,400 units that require 8 standard pounds per unit at $5.5 standard price per pound. The company actually used 52,200 pounds in production. Journalize the entry to record the standard direct materials used in production. For a compound transaction, if an amount box does not require an entry, leave it blank. fill in the blank 2 fill in the blank 3 fill in the blank 5 fill in the blank 6 fill in the blank 8 fill in the blank 9arrow_forward
- The standard cost sheet for a product is shown.(Pleasee see attachment for original question overview) Manufacturing Costs Standard price Standard Quantity Standard Costper unit Direct materials $4.50 per pound 5.50 pounds $24.75 Direct labor $12.15 per hour 2.10 hours $25.52 Overhead $2.40 per hour 2.10 hours $5.04 $55.31 The company produced 3,000 units that required: • 17,000 pounds of material purchased at $4.35 per pound • 6,200 hours of labor at an hourly rate of $12.45 per hour • Actual overhead in the period was $15,560 Fill in the Budget Performance Report for the period. Some amounts are provided. Round your answers to the nearest dollar. However, do not round your intermediate calculations. Budget Performance Report Manufacturing Costs:3,000 units ActualCosts StandardCosts Variance(Favorable)/Unfavorable Direct materials $73,950 $(fill in the blank) $(fill in the blank) Direct labor (fill in the blank) 76,545 (fill in the blank) Overhead…arrow_forwardSubject: Accountingarrow_forwardplease answer in text form and in proper format answer with must explanation , calculation for each part and steps clearlyarrow_forward
- Subject- accountarrow_forwardBullseye Company manufactures dartboards. Its standard cost information follows: Standard Quantity Standard Price (Rate) Standard Unit Cost Direct materials (cork board) 4.50 sq. ft. $ 2.60 per sq. ft. $ 11.70 Direct labor 1 hrs. $ 10.00 per hr. 10.00 Variable manufacturing overhead (based on direct labor hours) 1 hrs. $ 0.75 per hr. 0.75 Fixed manufacturing overhead ($22,000 ÷ 110,000 units) 0.20 Bullseye has the following actual results for the month of September: Number of units produced and sold 90,000 Number of square feet of corkboard used 420,000 Cost of corkboard used $ 1,134,000 Number of labor hours worked 100,000 Direct labor cost $ 910,000 Variable overhead cost $ 74,000 Fixed overhead cost $ 56,000 Required:1. Calculate the direct materials price, quantity, and total spending variances for Bullseye.2. Calculate the direct labor rate, efficiency, and total spending variances for Bullseye.3. Calculate…arrow_forwardBullseye Company manufactures dartboards. Its standard cost information follows: Standard Quantity Standard Price (Rate) Standard Unit Cost Direct materials (cork board) 2.00 sq. ft. $ 2.80 per sq. ft. $ 5.60 Direct labor 1 hrs. $ 10.00 per hr. 10.00 Variable manufacturing overhead (based on direct labor hours) 1 hrs. $ 0.40 per hr. 0.40 Fixed manufacturing overhead ($69,000 ÷ 230,000 units) 0.30 Bullseye has the following actual results for the month of September: Number of units produced and sold 210,000 Number of square feet of corkboard used 440,000 Cost of corkboard used $ 1,276,000 Number of labor hours worked 219,000 Direct labor cost $ 1,992,900 Variable overhead cost $ 80,000 Fixed overhead cost $ 58,000 Required:1. Calculate the direct materials price, quantity, and total spending variances for Bullseye.2. Calculate the direct labor rate, efficiency, and total spending variances for Bullseye.3.…arrow_forward
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What is variance analysis?; Author: Corporate finance institute;https://www.youtube.com/watch?v=SMTa1lZu7Qw;License: Standard YouTube License, CC-BY